China Gezhouba : RMB 3.335 Billion! CGGC Signs Contract for Balakot Hydropower Project in Pakistan

CGGC, as the leading party, has formed a joint venture with Pakistan-based company GRC, and signed the EPC contract for Balakot Hydropower Project in Pakistan with Pakhtunkhwa Energy Development Organization (PEDO) recently. The project contract amount is equivalent to about RMB 3.335 billion, 90% of which is contracted by CGGC.

The successful signing of the Project is another achievement of CGGC in implementing Several Opinions of CEEC, following the market orientation, deeply exploring key countries, and realizing the rolling development of energy cooperation in Pakistan. It will inject new impetus into the 'Belt and Road' Initiative and the construction of China-Pakistan Economic Corridor (CPEC). The signing of the agreement was witnessed by Chief Minister of Khyber Pakhtunkhwa of Pakistan and the CEO of PEDO.

Scene of Contract Signing

Balakot Hydropower Station is located in the Mansera region of Khyber Pakhtunkhwa of Pakistan, and is the largest hydropower project planned and constructed by PEDO at present, with the funding source from Asian Development Bank. The Project will install 3 francis turbine units with a total installed capacity of 300 MW, and the main work includes the design, supply, installation and construction of concrete gravity dam, right bank sand flushing tunnel, power generation and water diversion system, etc. After completion, the Project will effectively alleviate local power shortage, further increase the proportion of clean energy in Pakistan, and inject vitality into social and economic development. The Project commenced immediately after signing of the contract.

The Project is another hydropower project signed by CGGC in Pakistan by means of online and on-site negotiation given the impact of the pandemic, which has made a new breakthrough in project mode and further tapped into the regional market.

Pakistan is a key country for CGGC's overseas investment and construction, and it takes up a market of US $10 billion for CGGC's international businesses. As the 'global calling card' of water conservancy and hydropower construction and an important force in the construction of CPEC, CGGC has undertaken a number of major water conservancy and hydropower projects in Pakistan, including NJ Hydropower Project, DASU Hydropower Project, SK Hydropower Project, Mohmand Hydropower Station and KAROT Hydropower Project. It has played a leading and exemplary role in promoting the construction of CPEC.