Kohala plant back on track after 3-year delay
Pakistan has agreed in principle to revive the 1,124MW Kohala Hydropower Project (KHPP) and extend the completion deadline by three years, sources in the Planning Commission told Dawn. The project had been stalled for three years as China Export and Credit Insurance Corporation (Sinosure) was reluctant to provide insurance cover to the project as Pakistani power companies had not paid the dues of over Rs550bn owed to Chinese independent power producers (IPPs). Moreover, there were also concerns over the changes in land acquisition law and environmental regulations by the Azad Kashmir government. Earlier this year, China Three Gorges Dam Corporation (CTG) — the Chinese sponsor of the project — had demanded the revival of the $2.5 billion hydropower station.