KHCL seeks extension for LoS for Kohala Hydropower Project as the request has been handed over to the Pakistani government.
Kohala Hydropower Company Limited (KHCL), the Chinese firm responsible for the $2.5 billion Kohala Hydropower Project, has officially requested the Pakistani government to extend the project’s Letter of Support (LoS) until September 30, 2027.
The company submitted its request to the Power Division to ensure continued progress on the 1,124 MW run-of-the-river project, a critical component of the China-Pakistan Economic Corridor (CPEC).
In its letter to the Power Division, KHCL confirmed that it has fulfilled all necessary requirements, including providing a $5.62 million Performance/Bank Guarantee, as required by the original LoS. The extension is vital for the uninterrupted continuation of the project, which holds strategic importance for both Pakistan and China. The project has been progressing in line with Pakistan’s energy development goals, particularly the National Electricity Generation Capacity Expansion Plan (IGCEP) 2022-2031.
The Kohala project has already achieved significant milestones, such as acquiring 4,607 Kanals of land for development and compensating the affected local communities.
Furthermore, the company has signed key agreements, including an Implementation Agreement with Pakistan’s government and a Tripartite Power Purchase Agreement (TPPA) with the relevant agencies.
KHCL’s CEO, Liu Yonggang, stressed the importance of the LoS extension and urged the Power Division to issue the formal notification without delay. This extension would ensure the continued advancement of the project, which is expected to play a significant role in addressing Pakistan’s energy needs and fostering economic growth.
The Ministry of Power and the Private Power and Infrastructure Board (PPIB) are currently reviewing the request, with the PPIB already indicating their support for the extension.
The PPIB had earlier informed the company of the approval to extend the Financial Closing (FC) date until September 2027, contingent upon the extension of the bank guarantee. The company remains committed to meeting the project’s milestones, which are critical to Pakistan’s long-term energy security objectives.
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