Islamabad: The Karot Hydropower Project (HPP) stands as a model for Pakistan’s renewable energy future, balancing clean energy production, environmental stewardship, and economic development.
While briefing the media and parliamentary delegation organized by “Understanding China Forum” at Karot HPP on Monday, Senior Advisor at China Three Gorges South Asia Investment Ltd (CSAIL) has said that the generation of reliable and affordable electricity will also help improve industrial productivity and support the growth of other sectors such as agriculture, manufacturing, and services, which depend heavily on consistent energy supply. Furthermore, the project’s long-term operation will reduce Pakistan’s energy import dependency, contributing to the country’s energy security and overall economic stability.
He noted that as a single power generation hydropower complex, the project’s layout includes rock fill dam, spillway, powerhouse, diversion tunnels, head race power tunnels, tail race tunnels.
The project was developed under the Power Policy 2002 on a Build-Own-Operate-Transfer (BOOT) basis, with an expected concession period of 30 years. It has been listed as one of the prioritized/early harvest project under the China-Pakistan Economic Corridor (CPEC), said Zuberi.
He also noted that Karot HPP was developed by Karot Power Company (Private) Ltd. (KPCL), a subsidiary company of CSAIL. CSAIL is a subsidiary of China Three Gorges Corporation (CTG) (93%) and Silk Road Venture Investment Company (7%).
KPCL is registered in Pakistan in SECP and is financed by a consortium of China EXIM Bank and China Development Bank (70%), Silk Road Fund (15%), and International Finance Corporation (IFC) of World Bank (15%).
CTG, the world’s largest clean energy provider, operating in over 40 countries has been awarded by Pakistani government on the contribution towards clean energy.
He further added that CSAIL is currently managing and developing six renewable energy projects in Pakistan, with a total installed capacity of over 3,000 MW and an investment exceeding $6 billion. These projects include the 720 MW Karot HPP in Punjab, the 1,124 MW Kohala HPP in Azad Jammu and Kashmir (AJK), the 640 MW Mahl HPP in AJK, and three 50 MW wind power projects in Sindh.
The 720 MW Karot HPP, located on the Jhelum River, is the second largest private sector hydropower project in operation in Pakistan. The construction of the Karot HPP began in December 2016 while it achieved its Commercial Operation Date (COD) on June 29, 2022, and has been contributing affordable, clean, and sustainable energy to Pakistan’s national grid since that time.
The power project created approximately 5,000 local jobs during its construction phase, and currently around 200 local workers and 25 Chinese nationals are employed at the Karot HPP.
Zuberi told that this is a foreign direct investment (FDI) project. The total project cost is around USD 1.74 billion. The installed capacity is 720MW (4×180MW), with average annual electricity output of 3206 GWh and annual utilization time of 4452 hours.
By harnessing the power of water, it not only contributes to meeting the country’s energy needs but also supports national economic goals and helps mitigate climate change.
