Govt.

College University Lahore

Submitted To: Miss Dr. Saima Sarwar

Assignment: Karot Hydropower Project(CPEC)

Submitted By: Hassan Khalid

Roll #: 0231-BH-ECON-14
Subject: International Political Economy
Department: Economics
 Karot Hydropower Project
Introduction:
China Pakistan Economic Corridor (CPEC) is the project of One Belt One Road. This road is made for the
free trade between different countries. CPEC is the project between china and Pakistan. It is heavy
investment from the china in Pakistan. CPEC is also known as collection of infrastructures programs that
are under constructed through out in Pakistan. The value of CPEC projects worth 62 billion dollars. These
projects include transport projects, energy projects, infrastructure projects. A vast network of highways
and railways are built under CPEC. Over 33 billion dollars are spending by china on energy projects in
Pakistan to meet with energy need in Pakistan. Pakistan is under developed country and it have many
problems. The very big problem of Pakistan is energy crisis and china help Pakistan by construct the
energy projects in Pakistan through CPEC. CPEC is gift from GOD to Pakistan and Pakistan have to take
maximum benefit from it.

The one of big investment in energy sector in Pakistan is Karot Hydropower Project. It is the first energy
project by china through CPEC. All investment on this project is given by china through CPEC. It is
completed in 2020. It is the first hydropower project finance through the CPEC. The construction cost of
this project is almost 1.42 billion dollars. This project is run and maintain by the construction company in
first thirty years at the tariff of 57 cents per unit and after that it is hand over to Pakistan government at
the rate of 1 rupees per unit. The name of construction company is karot power company.

Theoretical Framework:
Karot hydropower project is the first project under the CPEC. It is the first energy and hydropower
project finance by the CPEC. The construction budget of this project is 1.42 billion dollars and it totally
given by china. In first three years this project is run and maintain by construction company at the tariff
rate of 57 cents per unit and after that it is given to Pakistan government and they take 1 rupee per unit.

Pakistan is go through the very bad energy crisis and under cpec there are many energy projects and it is
one of them. The energy producing capacity of this project is 720 mw and is the type of embankment
rockfill dam. The location of this dam is Punjab, Pakistan and it is built on river jehlum. Its help Pakistan
to come out from the energy crisis. The height of dam is 95.5 meter with 320-meter cresent length. The
dam reservoir is approximately 164.5 cubic meter.

The construction expenditures are afforded by the export-import bank of china and china development
bank.

Due to energy crisis Pakistani industry face many problems and economy of Pakistan is down. Through
these types of projects through CPEC help Pakistan to come out from the energy crisis and this type of
projects help Pakistan in progress. This project is constructed on one of the largest river of Pakistan
jehlum. It is the easiest and cheapest way to produce energy and it provide better future to the region
and people of Pakistan. It provides energy from the cheapest way and from the natural resources.
Energy help in many aspects of life from a bulb to refrigerator, from cellphone to fan. It is very difficult
to country to maintain its economic growth in energy crisis. So, this project help Pakistan in economic
growth of the country by coming out from the energy crisis.
The karot hydropower project is the largest foreign investment in the energy sector of Pakistan. It
produces energy at the affordable prices. The karot hydropower project increase the availability of
energy in Pakistan and provided 3674 mw energy per anumm. The project is complete in 2020 with the
investment of 1.42 billion dollars by china through the CPEC.

Conclusion:
Pakistan is an under developed country and CPEC is the gift from GOD to Pakistan. Pakistan have to take
maximum benefit from this project. This project cannot fulfill the energy need of Pakistan. But at least
gave some energy. The total energy need of Pakistan is almost 22000 mw and energy crisis are about
6000 mw. By this type of projects Pakistan meet their energy needs. There are also many projects like
this under the investment of CPEC. I hope this type of projects help Pakistan in progress and meet with
their energy crisis. Because, the energy is very important factor in the economic growth of every
country. So, this type of projects helps Pakistan in economic growth. In the end, Thank you GOD for the
CPEC.