China's Silk Road Fund to finance USD 1.4 bn hydro dam in Pak

A USD 1.4 billion hydro power dam in Pakistan will be the first project to be financed by China's multi-billion Silk Road Fund to alleviate the power crisis faced by the country, state-run media reported today.
The Karot Hydro Power Project, located in country's North with an installed capacity of 720 megawatt, will be the first project to receive support the USD 40 billion Silk Road Fund, state-run Global Times quoted Mushahid Sayed, President of the Think Tank Pakistan-China Institute, as saying.
The project is proposed to be built on the Jhelum River near village Karot in Kahuta tehsil in Rawalpindi district.

The project, with its main sponsor being an investment arm of China Three Gorges Corporation, is expected to alleviate the energy shortage of Pakistan, the report said.
93 per cent of the project's funding will be done by China, according to some Pakistani media reports.
The "One Belt, One Road" initiative, which refers to the Silk Road Economic Belt and the 21st Century Maritime Silk Road, were launched by President Xi Jinping in 2013, under which China aims to support partner countries along the routes in infrastructure construction.

The China-Pakistan Economic Corridor, connecting China's Xinjiang with Pakistan's Gwadar Port, is part of the Silk Road projects.

The success of the China-Pakistan Economic Corridor will boost confidence of countries and regions along the route Sayed said.
"Pakistan has traditionally been a long-standing all- weather friend to China, and Pakistan is both a part of the Central Asian economic belt through the economic corridor and a part of the 21st Century Maritime Silk Road through the port of Gwadar.
"Building ports, pipelines, roads, rail links, infrastructure and IT through the corridor will enhance connectivity between China, Pakistan and South and Central Asia, and the corridor would be a game changer and a win-win development for both countries," Sayed said.

The framework of the Silk Road Economic Belt will be a number of economic corridors, including the China-Pakistan Economic Corridor, along key transportation arteries supported by key cities, trade zones and industrial parks, Fan Hengshan, deputy secretary-general with the National Development and Reform Commission, said.
The 21st Century Maritime Silk Road will be supported by key ports along the route to ensure smooth, and safe passage of transport and trade, Fan said.
The Silk Road Fund Co Ltd was established in December last year in Beijing, after President Xi Jinping announced the creation of the USD 40 billion fund in November.