The latest development in the China-Pakistan partnership involves the signing of an agreement for a 700 MW hydel power project on the Jhelum river. This news has attracted attention due to the project’s location in the Sudhnoti district of Pakistan occupied Kashmir (PoK) and its connection to the China Pakistan Economic Corridor (CPEC). The USD 1.5-billion project is slated for completion by 2024.
Azad Pattan Hydropower Project Overview
The Azad Pattan project is one of the five hydropower schemes on the Jhelum. The remaining four include Mahl, Kohala, Chakothi Hattian, and Karot projects. Azad Pattan, Kohala, and Karot are part of the CPEC framework.
The Azad Pattan scheme is a run-of-the-river operation with a 90-metre high dam and a 3.8 sq km reservoir. It follows a ‘Build, Own, Operate, Transfer (BOOT)’ model, where the government of Pakistan acquires the project after 30 years.
India’s Concerns over the Project
The development of infrastructure in PoK and Gilgit Baltistan – territories India claims as part of Jammu and Kashmir – has led to objections from India. India had previously protested the construction of the Diamer-Bhasha dam on the Indus river in the Gilgit-Baltistan region of PoK.
This hydel project agreement between Pakistan and China coincides with military tensions between India and China following the Galwan Valley incident in Ladakh, adding another layer of complexity.
Implications for the Chabahar Rail Project
Iran’s decision to proceed with the Chabahar rail project with China, without Indian assistance due to funding delay, is another concerning development. Chabahar is seen as India’s strategic counter-action to the China-Pakistan Economic Corridor.
Questions About Compliance with International Norms
These projects are being scrutinised for their lack of openness, transparency, and financial responsibility. Observers are concerned that they do not uphold principles set forth by international agencies.
Security Issues Connected to the Project
China’s increasing influence in the region, facilitated by these projects, raises security concerns. With the Gwadar port project giving China a foothold in the western Indian Ocean near the strategic Strait of Hormuz, China could potentially use its economic power to leverage geopolitical outcomes. This situation poses a significant threat to India, which relies on the Middle East for more than 60% of its oil supplies.
About the China-Pakistan Economic Corridor
The China-Pakistan Economic Corridor (CPEC) is an integral part of the One Belt One Road (OBOR) initiative. It aims to enhance infrastructure within Pakistan for improved trade with China and greater regional integration. However, India has boycotted the Belt and Road Forum organised by China due to the country’s decision to establish the CPEC through PoK, viewed by India as a blatant disregard for its territorial claims.