Karot Hydropower Project is progressing as per schedule along with full support of PPIB, Government of Pakistan, Provincial Government of AJ&K, Provincial Government of Punjab, WAPDA, Lenders, Partners, and other stakeholders, which has shown our ability in finance management and technology to lead and execute the hydropower projects in private sector development of Pakistan. Major milestones achieved to date are as followed:
After the award of the Letter of Interest (LOI) by PPIB, a Consortium of Consultants led by M/s SMEC International (Pty) Ltd., Australia was appointed by the sponsors for carrying out the feasibility studies and preparation of a bankable Feasibility Report, which has been approved by PPIB on 13th October 2009. After the approval of feasibility study, TGSAIL started conducting the additional site investigation and exploration since May, 2012 and finished the site work on diversion system in February, 2013, which indicates that the technical scheme suggested by SMEC in the original feasibility study is technically unfeasible. Thus, TGAIL has to review and update the feasibility study according to the Chinese Standards and Codes. The related work has been started since March, 2013.
KPCL has filed the Tier-1 tariff petition with NEPRA upon the approval of the feasibility stage as per the Power Policy 2002, NEPRA determined the feasibility stage tariff on 29th May, 2012 and then notified the revised feasibility stage tariff determination on 11th, December, 2012. The Generation License has been issued by NEPRA on November 26th, 2013.The Performance Guarantee has been submitted by the Project Company in July 2013 and the Letter of Support has been issued by PPIB on 29th August, 2013.
KPCL launched its EPC contractor tendering after doing bidding process selected TGDC as its EPC contractor.Contract between KPCL and TGDC is signed on 25th Feb 2015.
The Power Purchase Agreement (PPA) of 720 MW Karot Hydropower Project has been signed between Karot Power Company (Pvt) LTD, subsidiary of China Three Gorges Investment Corporation, and the Central Power Purchasing Agency (Guarantee) Limited, Pakistan (CPPA(G) for short) in Islamabad on 30th August 2016.Power Purchase Agreement, one of the Security Agreements of the Project, is the most important commercial agreement stating operation method, payment mechanism, rights and obligations of each party.GOAJ&K Implementation Agreement , GOAJ&K Water Use Agreement and GOAJ&K Land Lease Agreement has been signed that will materialize $1.68 Billion of the project cost for the 720 MW Karot Hydropower project in Pakistan.The agreement has been signed on behalf of the Government of AJ&K by the Private Power Cell and Chief Executive of Karot Power Company (Pvt.) Limited on 28th September, 2016.The Private Power and Infrastructure Board (PPIB) and Karot Power Company on signed the Implementation agreement that will materialize $1.68 Billion of the project cost for development and operations of 720MW Karot.The project has been listed as one of the Prioritized Project of the $46 billion China Pakistan Economic Corridor (CPEC) and is expected to achieve commercial operations by 2020. Power Purchase Agreement, one of the Security Agreements of the Project, is the most important commercial agreement stating operation method, payment mechanism, rights and obligations of each party etc., The final execution of the agreement means a great meaningful step of Karot, being the first greenfield project of China Three Gorges Corporation and an IPP project with the biggest installed capacity so far in Pakistan.
Karot hydropower project issued "Notice to Proceed" to its EPC contractor TGDC on 1st December 2016.The Project Company have accomplished various obligations/tasks stipulated in the Letter of Support and achieved Financial Close on 22nd Febuary 2017.