ISLAMABAD            -        A tripartite agreement for 1124 MW Kohala Hydro Power Project under the China Pakistan Economic Corridor Project framework was signed here Thursday.

The agreement was signed between a Chinese company, Pakistan and Chinese government.

Prime Minister Imran Khan, Chinese Ambassador Yao Jing, federal ministers and others attended the ceremony.

The Kohala Project is part of the CPEC, being developed by Kohala Hydropower Company Ltd (KHCL), which is a subsidiary of China Three Gorges Corporation (CTGC).

The signing of agreement is an important step as it is not only a priority project of CPEC, but also one of the largest amongst the IPPs with a $2.4 billion investment.

Addressing the ceremony, the Prime Minister said the government is focused to provide clean and affordable energy to people, and this project will largely contribute to this objective.

Welcoming the $2.4 billion investment, he said the project will generate job opportunities in AJK.

While terming the agreement a “great step” towards foreign investment, the prime minister said Pakistan should have invested in hydropower sector far earlier.

Imran Khan said the country was progressing well when it had been producing hydro power until it started banking on imported fuel which not only made the local industry non-competitive but also put additional burden on foreign reserves.

The power generation through imported fuel generation also adversely impacted the environment as Pakistan was among nine countries to get worst hit by climate change which necessitated the promotion of clean energy, he maintained.

The prime minister said the Kohala Hydropower Power Project drew the biggest ever investment in Pakistan on a single project.