Neelum hydel project contract may go to Chinese firm

Pakistan is likely to award the contract of 969 megawatt (MW) Neelum-Jhelum hydel power project, located near Mirpur, Azad Kashmir, to China, sources in Private Power Infrastructure Board (PPIB) told Business Recorder. The Minister for Water and Power, Liaquat Ali Jatoi, while chairing a meeting on the project here on Tuesday, directed Wapda to negotiate terms with three Chinese companies which have already showed interest in undertaking the project, sources said.
"Jatoi has directed Wapda to look into the financial capacity of three Chinese firms and submit report within two weeks for final decision," sources added.
They said that government wants to complete this strategic hydel power project from its own financial resources, but Wapda and Economic Affairs Division's (EAD) failure to arrange funds forced the concerned quarters to offer the project to a foreign company.
Jatoi, according to a press release, also asked Wapda to ensure foolproof security arrangements, both for foreigners and locals working on Mangla dam raising and other projects.
"All possible steps should be taken with the help of concerned authorities to guarantee the security of foreign personnel working on these mega projects," the Minister said.
He also asked Wapda for transparent and complete implementation of resettlement package promised by the government to the affectees of Mangla dam raising scheme.
The Minister directed that the project should be completed within stipulated time, which is September 2007. The Minister also stated that the proposals of AJK government on the project should also be considered on priority.
Earlier, Wapda Chairman briefed the Minister on progress of the project and stated that the package was being implemented fairly. He said that fishing rights have been given to AJK government and water use charges are also being paid to AJK under the package. Construction of temporary facilities in five work areas is almost 50 percent complete.
The meeting was attended by Secretary Water and Power, Special Secretary Water and Power, Wapda Chairman, PPIB MD, Member Water and other senior officials of Ministry and Wapda.