The Patrind hydroelectric project between the Kunhar and Jhelum rivers near Muzaffarabad is expected to commence operation in 2016.
The facility is being developed by Star Hydro Power, which is jointly owned by Korea Water Resources Corporation, Daewoo Engineering and Construction Co, and Sambu Construction Co.
ABD said Pakistan has an acute shortage of power, estimated at over 4,200MW during peak demand, which has led to worsening brownouts and blackouts across the country, necessitating power rationing.