ISLAMABAD: The China Three Gorges South Asia Investment Limited (CSAIL) has requested a three-year extension for the Letter of Interest (LoI) related to its 640MW Mahl Hydropower Project (HPP) to align its development with Pakistan’s evolving energy requirements, sources revealed.
As the government explores options to address surplus energy capacity and rising tariff concerns, it is considering slowing down or revising several power projects, including the 4,500MW Diamer Bhasha Dam and Chashma-5.
CSAIL, a subsidiary of China Three Gorges Corporation (CTGC), is a major player in Pakistan’s renewable energy sector, with investments exceeding $6 billion across six projects totaling over 2,600MW. These include the 720MW Karot HPP in Punjab, which began operations in June 2022 under the China-Pakistan Economic Corridor (CPEC), as well as the 1,124MW Kohala HPP, the 640MW Mahl HPP, and three wind projects in Sindh.
The company has completed the Mahl HPP feasibility study on the Jhelum River but requires an LoI extension beyond its December 2024 expiration to address financial and regulatory challenges and improve project viability.
In a letter to Power Minister Sardar Awais Leghari, CSAIL highlighted its commitment to optimizing project timelines, reassessing costs, and structuring financing to ensure affordable tariffs aligned with National Electric Power Regulatory Authority (NEPRA) standards.
CSAIL’s CEO, Zhou Qiang, underscored the importance of the LoI extension, noting it would enable the company to support Pakistan’s energy affordability goals while maintaining its role as a global leader in hydropower development. The project’s realignment with future energy demand growth is expected to bolster international investment in Pakistan’s sustainable energy initiatives.
Story by Mushtaq Ghumman
