Finance Minister Ishaq Dar has directed Economic Affairs Division to explore possibility of financing, amounting to $575 million, from China for Neelum Jhelum Hydropower (NJHP) project. Finance Minister, who chaired a high level meeting to review financing arrangements for the NJHP project, directed Secretary EAD that possibility of financing from Industrial and Commercial Bank of China (ICBC) and Exim Bank of China may be explored.
The meeting was briefed on the progress of the project and was informed that to-date Rs 136 billion had been spent on the project. The Minister was apprised that an amount of US $575 million foreign funding and local financing of Rs 100 billion was required.
The meeting decided that Wapda may arrange financing of Rs 41 billion out of the total Rs 100 billion local financing required and negotiations with Islamic Banks may be undertaken to seek financing of remaining Rs 59 billion.
The Minister directed the Ministry of Water and Power and Wapda to make dedicated efforts for meeting the financial requirements in accordance with measures suggested during the meeting. The meeting was also told that the Prime Minister had asked Minister for Finance to resolve financial issues of NJHP and work out total requirement of funds till completion of the project. Finance Minister directed Wapda to review and develop PC-I including duties and 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 Central Developing Working Party (CDWP) and subsequently to the Executive Committee of National Economic Council (Ecnec) after proper scrutiny for approval. The meeting was also attended by Minster for Water and Power Khawaja Muhammad Asif.
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