Chinese firm requests extension of Letter of Support for 1124 MW Kohala Hydropower Project

KHCL objects to exclusion from Integrated Generation Capacity Expansion Plan 2025-35 draft

Chinese firm, Kohala Hydropower Company Limited (KHCL) has expressed concern over recent revisions proposed in the draft Integrated Generation Capacity Expansion Plan (IGCEP) 2025-35, which retroactively altered the criteria for “Committed Projects,” resulting in the unjustified exclusion of the Kohala Hydropower Project (HPP), according to a  news report.  

In a letter to the Power Division, CEO Liu Yonggang renewed the company’s request for a formal notification to extend the Letter of Support (LoS) for the 1124 MW Kohala HPP, as approved by the Private Power and Infrastructure Board (PPIB) during its 144th meeting on September 18, 2024.

Liu pointed out that the Kohala HPP has fulfilled all requirements, including the submission of a $5.62 million Performance Guarantee, and has consistently been recognized as a “Committed Project” under previous IGCEP plans. The project was also reaffirmed as such under the National Electricity Plan 2023-27, in line with the Council of Common Interests (CCI) decision of September 13, 2021.

Despite this, the company criticized the recent revisions to the draft IGCEP, which it claims retrospectively changed the criteria for “Committed Projects,” resulting in Kohala HPP’s exclusion. 

The CEO emphasized that such changes undermined legally established rights and contractual obligations, adding that once a project is recognized as committed, it should not be revaluated under new criteria in subsequent versions of IGCEP.

KHCL further argued that the Kohala HPP had already met all necessary development milestones, including signing core agreements with the government and acquiring land for the project. 

The company also noted that Kohala HPP is a flagship project under the China-Pakistan Economic Corridor (CPEC) and plays a critical role in ensuring Pakistan’s riparian rights under the Indus Waters Treaty.

Liu Yonggang warned that delays in progressing Kohala HPP could undermine Pakistan’s water rights over the Jhelum tributary, citing the importance of timely hydroelectric development for securing national interests.

Monitoring Desk
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