The project agreements for construction of Azad Pattan Hydropower Project, under the China-Pakistan Economic Corridor (CPEC), were signed on Tuesday.
With an investment of over $1.35 billion and 700.7 megawatts of electricity, the Azad Pattan Project involves no fuel import and will enable the country to move towards cheaper and greener power generation.
The agreements, including the implementation agreement and water use agreement, were signed by Azad Jammu and Kashmir (AJK) Electricity Secretary Zafar Mahmood Khan and Azad Pattan Power Private Limited CEO Li Xiaota.
The government of Pakistan implementation agreement, Punjab water use agreement and tripartite power purchase agreements of the project had already been signed in the presence of Prime Minister Imran Khan in July this year. The development would further pave way for achievement of financial close of the project.
Azad Pattan Project is being implemented by the Private Power Infrastructure Board (PPIB) under the policy for Power Generation Projects 2002 on built, own, operate and transfer (BOOT) basis for a tenure of 30 years after which it will be transferred to the AJK government free of cost.
The project is expected to bring valuable foreign direct investment and would provide energy of about 3,266 GWh per year to the national grid by 2027.
Moreover, the project would also play a crucial role in stimulating the local economy by providing employment and business opportunities during its construction periods.
