On April 20, 2015, the Silk Road Fund, China Three Gorges Corporation, and Pakistan's Private Power and Infrastructure Board (PPIB) signed a Memorandum of Understanding on Development of Pakistan's Hydropower Project in Islamabad. Chinese President Xi Jinping and Pakistani Prime Minister Nawaz Sharif were also in attendance at the signing ceremony.
The project is the Silk Road Fund's first investment since it was established at the end of 2014. This project indicates a solid step for the Fund's investment operations moving towards a market-oriented, international and professional direction.
According to the memorandum, the Silk Road Fund will become a shareholder of China Three Gorges South Asia Investment Ltd to support clean energy development in Pakistan and provide funding for the company's first hydropower project, the Karot Hydropower Station on the Jhelum River. As one of the priority energy projects in the China-Pakistan Economic Corridor and construction, the Karot Hydropower Station is expected to commence this year. The investing parties plan to develop a total capacity of 3,350 megawatts in the Jhelum River basin through new developments and mergers and acquisitions. The PPIB will facilitate the Silk Road Fund and China Three Gorges Corporation's investment in Pakistan's energy projects.
As a medium to long-term development investment fund focusing on regions involved in the Belt and Road Initiative, the Silk Road Fund will adhere to the investment philosophy of conducting commercial operations, seeking mutual benefit, and being open and inclusive, so as to promote investment and financing cooperation as well as to foster mutual development and prosperity, in relevant countries and regions.