ISLAMABAD: M/s Kohala Hydropower Company Limited (KHCL), a Chinese firm, has formally requested the government to issue a notification extending the Letter of Support (LoS) for its $2.5 billion, 1,124 MW run-of-the-river Kohala Hydropower Project until September 30, 2027, sources told Business Recorder.
The Kohala project, a priority initiative under the China-Pakistan Economic Corridor (CPEC), initially received LoS from the Private Power and Infrastructure Board (PPIB) on December 31, 2015, with extensions granted thereafter, the latest approved during PPIB’s 144th Board meeting.
In a letter to the Power Division, KHCL highlighted that it has submitted a $5.62 million Performance/Bank Guarantee, fulfilling conditions for the LoS extension. The company emphasized the project’s strategic importance under CPEC, citing compliance with all principal agreements, including Implementation Agreements with Pakistan and AJ&K governments, and the Tripartite Power Purchase Agreement with CPPA-G and NTDC.
KHCL noted that it has acquired around 4,607 Kanals of land for project development, with compensation fully disbursed to affected communities. The company also stressed that Kohala is classified as a “Committed Project” under the IGCEP 2022–2031 plan approved by NEPRA and the Council of Common Interests (CCI).
China Three Gorges, the project’s sponsor, argued that all necessary regulatory and contractual prerequisites have been met, urging the government to promptly issue the formal LoS extension to ensure the project’s uninterrupted progress.
On October 4, 2024, PPIB’s Managing Director, Shah Jahan Mirza, had advised KHCL to extend its Bank Guarantee validity to December 31, 2027, and submit a detailed bar chart outlining key milestones leading up to Financial Closing by September 30, 2027.
Story by Mushtaq Ghumman
