ISLAMABAD: The Private Power and Infrastructure Board (PPIB) and Power Universal Investment Co Ltd, Dubai UAE, a subsidiary of China Gezhouba Group Company Ltd on Thursday executed letter of support (LoS) for development of 640MW Azad-Pattan Hydropower Project in Azad Jummu and Kashmir (AJK).

The signing will lead to further development, financing, construction and subsequently operation of the project, an official announcement said.

The PPIB said the 640MW Azad-Pattan Hydropower Project is a run of the river hydropower project located on River Jhelum on dual boundary of AJK and Punjab having capability to generate clean, reliable and affordable 3.075 billion units of electricity per year to the national grid.

The project is located very close to the load centre and will be connected to the national grid through 500 kV transmission line.

The statement said the government attached top priority to generate electricity at affordable prices utilising indigenous resources like coal and hydro, hence this project assumes further importance. In line with the policy of the government, PPIB is handling and facilitating the development of this project for its timely completion to meet the future energy requirements.

This project is being developed by Power Universal Investment Co. Ltd, Dubai UAE, a subsidiary of China Gezhouba Group Company Ltd and Laraib Group at Pakistan. The project will be implemented on Build-Own-Operate-Transfer (BOOT) basis under the provisions of Power Policy 2002.

After commissioning, the company will operate and maintain the project for 30 years after which it will be transferred to the Government of AJK at a notional price of one rupee.

Further, during operation and maintenance of the project, the AJK government and Punjab will receive Rs1.306bn every year on account of water use charges which would be shared equally between the two. After transfer of the project to AJK, Punjab will receive full amount of water use charges i.e. Rs1.306bn per annum.

PPIB is processing hydropower projects with a cumulative capacity of around 6,400MW through private sector which are at various stages of development.

Published in Dawn, July 1st, 2016