In a move that could see the country benefit from cheaper electricity, Pakistan's government on Monday announced a deal on the Pattan hydro project, located on the Jhelum River in the Sudhanoti district of Pakistan administered Kashmir.
The dam is part of the China- Pakistan Economic Corridor - a flagship infrastructure project conceived by Chinese President Xi Jinping, as a part of China’s multi-billion dollar Belt and Road Initiative which aims to create more efficient commercial links between Europe, Asia, and Africa.
The project is being developed by the Kohala Hydropower Company, which is a subsidiary of China's Three Gorges Corporation.
The signing ceremony was attended by Pakistan's Prime Minister Imran Khan and Chinese Ambassador Yao Jing.
Asim Saleem Bajwa, special assistant to Prime Minister Imran Khan on information and broadcasting, described the deal as another milestone for the country.
"We move towards cheaper and and greener power," he added.
#CPEC makes another milestone achievement;PM will grace the signing ceremony of Azad Pattan Hydel power Project today with China Gezhouba.With an investment of $ 1.5 Bn-no fuel import,we move towards cheaper&greener power.(Design Model Pics) #cpec #CPECMakingProgress pic.twitter.com/L9U2OOGxV2
— Asim Saleem Bajwa (@AsimSBajwa) July 6, 2020
The signing comes at a time when India and China are involved in talks to disengage from the Galwan Valley in Ladakh, where 20 Indian soldiers died following a skirmish with Chinese troops on 15 and 16 June.