The government of Pakistan, through the Private Power and Infrastructure Board, the authorities of Azad Jammu and Kashmir and state-owned China’s Three Gorges Corporation (CTG) have signed an agreement to build the 1,124 MW Kohala hydropower project on the Jhelum River under the China-Pakistan Economic Corridor (CPEC) framework. The project will require a US$2.4bn investment and is expected to generate 5 TWh/year of electricity.
In May 2020, the Pakistani government, through the Water and Power Development Authority (WAPDA), awarded a PKR442bn (US$2.8bn) contract to a joint venture made of the Chinese state-owned company Power China and subsidiary of Pakistan’s army Frontiers Work to build the 4.5 GW Diamer-Basha hydropower project on the Indus river. The awarded contract encompasses diversion system, main dam, access bridge and a 21 MW hydropower plant. The entire project is estimated to cost PKR 1,406bn (US$8.8bn) and construction work is expected to last 10 years. The project is opposed by India due to its impact over water resources for climate-vulnerable farmlands.
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