ISLAMABAD, Oct 9: A Chinese company has shown interest in investing in the $2 billion Kohala hydro-electric power project in Azad Kashmir.

A five-member delegation of the Sinohydro Corporation called on Minister for Water and Power Raja Pervez Ashraf here on Thursday and said it was keen to invest in the 110 megawatts project.

Mr Ashraf said his ministry would facilitate the company in joining open bidding.

The Chinese firm is involved in the Gomal Zam Dam and Khan Khawar and Dubair hydropower projects.

The proposed plant in Azad Kashmir would be one of the largest hydro-electric power projects in the private sector in South Asia, an official said. It would require a 16kms tunnel, a diversion from Seran village and a powerhouse in Barasala. The project would be linked to the national grid at Rawat near Rawalpindi through a 115kms 500kV transmission line, he said.

He said it was a high risk project and any company venturing to invest there would demand open-minded discussion with the government of Azad Jammu and Kashmir and the Water and Power Development Authority on tariff and other issues.