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Belt and Road

Pakistan benefits from China-India clash with hydropower deal

Himalaya tensions also give Islamabad opportunity to make a case for debt relief

Pakistani Prime Minister Imran Khan has two agreements in as many months from Beijing to fund hydropower projects in Pakistan-administered Kashmir. (Nikkei montage/Reuters/EPA/Jiji)

QUETTA, Pakistan -- A $2.4 billion deal between Pakistan and China for a massive hydropower project in Kashmir shows how three nations are vying to out-flank one another in the Himalayas, a disputed territory existing on a knife's edge that recently experienced a deadly clash between Chinese and Indian border forces.

China, Pakistan and the Kohala Hydropower Company, a subsidiary of China Three Gorges Corporation, late last month signed the deal. It calls for the construction of a 1,124-megawatt hydropower plant that is expected to be a key piece of infrastructure along the China-Pakistan Economic Corridor, itself part of Chinese President Xi Jinping's Belt and Road Initiative.

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