Silk Road Fund Commits $1.65 Billion in Pakistan Hydro Project
China’s US$ 40 billion Silk Road Fund Co Ltd announced its first project investment on April 20, 2015. The US$ 1.65 billion investment will go toward the Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives – a massive economic undertaking to link China with key parts of the world. Silk Road Fund Co Ltd signed a Memorandum of Understanding (MoU) with Beijing-based China Three Gorges Corporation, a state-owned Chinese power company, and the Pakistan Private Power and Infrastructure Board to commit capital to build the Karot Hydropower project on the Jhelum River.
The MoU comes about when People’s Bank of China made its second reduction to China’s reserve-requirement ratio this year, lowering it to 18.5%.
Formed in July 31, 2010, Karot Power Company Pvt Ltd is a special purpose vehicle responsible for executing 720MW Karot Hydropower project. It is primarily sponsored by China Three Gorges South Asia Investment Limited, a subsidiary of the China Three Gorges Corporation. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
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