China Three Gorges reaches FC on 720 MW hydro project in Pakistan

Karot Power, which includes China Three Gorges-subsidiary Three Gorges South Asia Investment and Associated Technologies of Pakistan, has achieved financial close for the 720 MW Karot Hydroelectric project​.

The total project cost is currently estimated at US$2 billion. The debt financing for the project was provided by The Export-Import Bank of China, China Development Bank, Silk Road Fund and International Finance Corporation.

Shearman & Sterling advised them in connection with the development and financing.

The new facilities will be located on the Jhelum River near the village of Karot in Kahuta tehsil 65 kilometres from Rawalpindi city. The plant includes an underground powerhouse that will generate electricity from four 183-MW Francis turbine units. 

The project is being developed under the Power Policy 2002 on a build-own-operate-transfer basis, with a concession period of 35 years (5 years of construction, 30 years of operation). The project is expected to be operational by 2020.

Energy generated at the plant will be sold to the National Transmission and Dispatch Company under a 30-year power purchase agreement (PPA). The project is expected to generate 3,436 GWh annually.

The total project cost is currently estimated at US$2 billion. The debt financing for the project was provided by The Export-Import Bank of China, China Development Bank, Silk Road Fund and International Finance Corporation.

Shearman & Sterling advised them in connection with the development and financing.

In May 2017, Developers awarded an engineering, procurement and construction (EPC) contract to a consortium that includes the Yangtze Three Gorges Technology & Economic Development Co. and China Machinery Engineering Corp.