Hydropower project in PaKistan | Chinese firm signs USD 1.5 bn deal with Pakistan

Hydropower project in PaKistan | Chinese firm signs USD 1.5 bn deal with Pakistan

A Chinese company on Monday signed a USD 1.5 billion agreement with Pakistan to set up a hydropower project in Pakistan-administered Kashmir (PaK) under the ambitious CPEC project.

Prime Minister Imran Khan witnessed the signing of the agreement with China Gezhouba for "Azad Pattan Hydropower Project" at a ceremony here.

The project is located in Sadhanoti district of PaK on Jhelum river and is expected to be completed in 2026.

The CPEC, which connects Gwadar Port in Balochistan with China's Xinjiang province, is the flagship project of Chinese President Xi Jinping's ambitious Belt and Road Initiative (BRI). Originally valued at USD 46 billion, the CPEC projects were worth USD 62 billion as of 2017.

India has protested to China over the CPEC as it is being laid through PaK.

The Ministry of External Affairs early this year said that Pakistan was told that entire Jammu and Kashmir and Ladakh, including areas of Gilgit and Baltistan, are an integral part of India.

"A part of China-Pakistan Economic Corridor (CPEC), with an investment of USD 1.5 Billion, 700.7 MW Azad Pattan will involve no fuel import, thus enabling the country to move towards cheaper & greener power while generating local job opportunities," according to an official statement issued by the Pakistan government.

Addressing the ceremony, Prime Minister Khan said that the project was an investment and would not be a burden on the country.

"We have learned a lot from the development of China, and the CPEC project will take Pakistan to the very top," he said.

Khan said no attention was paid to cheap electricity in the past and the country paid a heavy price.

The project is expected to create 3,000 jobs.

A Chinese official last month admitted that the majority of the projects under the BRI are either adversely or partially affected by the coronavirus pandemic.

About a fifth of the projects under the BRI, which aims to boost trade and investment across Asia, Africa and Europe to further China's global influence, had been "seriously affected" by the pandemic, according to Wang Xiaolong, director-general of the foreign ministry"s international economic affairs department.

About 40 per cent of the projects were "adversely affected", and a further 30-40 per cent were "somewhat affected" Wang said.

The projects which were disrupted included the CPEC.

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