Subsidiary loan agreement signed to make Kuwait, Pakistan $40 mln loan agreement effective

Islamabad: Economic Affairs Division EAD & Neelum Jhelum Hydropower Project Company NJHPC Monday signed subsidiary loan agreement, a legal requirement to make loan agreement between Kuwait & Pakistan effective. $40 million loan agreement was signed by Pakistan & Kuwait Fund for Arab Economic Development KFAED on November 25, 2010 to construct of Neelum Jhelum Hydropower Project.

“Signing a subsequently subsidiary loan agreement between EAD on behalf of government of Pakistan & NJHPC, a subsidiary of WAPDA was legal requirement to make loan agreement effective,” Secretary EAD Abdul Wajid Rana said. It was signed by Wajid Rana & NJHPC CEO Lt. General R Muhammad Zubair.

Neelum Jhelum Hydropower Project in Muzaffarabad district of Azad Jammu & Kashmir on completion will generate about 1,000MW electricity. KFAED is one of donor along with Exim Bank China, UAE & Saudi Fund for Development for project aimed at developing national power generation system to meet increasing demand and indigenous renewable energy resources hydro resources.

He said talks with China were going to fund this project and hoped with release of $40 million, cash flow issue will be resolved to great extent. CEO NJHPC said 36% work on project has been completed. Tunnel Boring Machine reach site in 20 days. He said project cost rose due to depreciation in Rupee value against dollar and other market issues. When completed, it will generate Rs 45 billion.

Secretary Water & Power Imtiaz Qazi said government was focusing on developing hydel and coal power projects. Owing to high energy cost and gas shortage, thermal electricity is getting out of reach and government paying heed to develop hydel and coal projects. Pakistan was also having talks with central Asian countries to import electricity and a delegation is in Almaty in this regard.

Leave a Reply