Provision of funds for Neelum-Jhelum power project reviewed

ISLAMABAD: Federal minister for finance, Senator Mohammad Ishaq Dar has directed the Economic Affairs Division (EAD) to explore financing of $575 million for the Neelum Jhelum hydropower project (NJHP).
The minister chaired a high-level meeting here Friday to review financing arrangements for the NJHP. Khawaja Mohammad Asif, federal minister for water and power was also present on the occasion.
The finance minister was briefed on the progress of the project and was informed that to-date Rs136 billion had already been spent on the project. For future works to be completed, foreign funding worth USD 575 million and local financing of Rs100 billion was required.
After detailed deliberations, the finance minister directed secretary EAD that possibility of financing from ICBC and Exim Bank of China may be explored. WAPDA may arrange financing of Rs41 billion out of the total Rs100 billion financing to be generated locally and negotiations with Islamic Banks may be carried out to seek financing of remaining Rs59 billion.
The minister directed the ministry of water and power and WAPDA to ensure dedicated efforts for meeting the financial requirements in accordance with measures suggested during the meeting.
It may be mentioned that the prime minister in February this year had asked minister for finance to resolve the financial issues of NJHP and work out requirements of funds. The Minister accordingly directed WAPDA to review and develop all-encompassing PC-I including duties & taxes, exchange loss, price escalation, interest during construction, etc. till completion of the project. Revised PC-1 would now be submitted to ministry of planning and development for placement before the CDWP/ECNEC after proper scrutiny.