Joint Working Group Approves Azad Pattan Hydropower Project’s inclusion in CPEC

The China-Pakistan Economic Corridor (CPEC) Joint Working Group (JWG) has approved 700MW Azad Pattan hydropower project for inclusion in the CPEC list.

This will assist to reach early financial close, start construction next year and also arrange the project’s financing in RMB – Chinese currency. The project will also be able to avail other facilities available to CPEC projects which will expedite the project and bring down the tariff, it was reported.

Azad Pattan hydropower project is a 700MW run-of-the-river pondage scheme on the River Jhelum, in the AJ&K, with capability of 4 hours daily peaking. The project will be located near the Azad Pattan Bridge, upstream of 720MW Karot hydropower project and downstream of 640 MW Mahal hydropower project and will be a part of the River Jhelum hydel cascade.

The project will deliver approximately 3.3 billion units of clean and renewable energy into the national grid after its completion in 2026. Being developed under the 2002 Power Policy, the project will be transferred free of cost to the government after the term. The tariff approved by NEPRA at US $ 7.1/ kWh is the lowest hydel tariff in Pakistan to date. The tariff will fall to around US $ 4/kWh after the debt payment period (12 years), and to around US $ 1/ kWh after the concession term ( 30 years) throughout its long life remaining useful life of over 70 years; off course all subject to indexation as allowed under the power policies.

The River Jhelum cascade is developing the potential of the flowing river water with (upstream to downstream) 1,124MW Kohala, 640 MW Mahl, 700 MW Azad Pattan and 720 MW Karot – a total of 3,184 MW and generating some 15 billion kWh annually; approximately 10% of Pakistan’s total electricity generation.

The river cascade development enables the maximum and most efficient use of the river water. In addition to energy generation, the cascade will store water and reduce the silt going into the Mangla Reservoir thus increasing life of Mangla Dam water storage.