Prime Minister Imran Khan has directed Finance Division to issue sovereign guarantee for $ 200 million commercial loans to be arranged by the Water and Power Development Authority (Wapda), sources close to secretary water told Business Recorder.
The Prime Minister gave these directions at a meeting held on December 26, 2019 which was largely attended by all the concerned stakeholders. Chairman Wapda Lt- Gen Muzamal Hussain (retd) gave a detailed presentation on the projects and hurdles that Wapda is facing in smooth progress of the projects' development.
Wapda, which is constructing water and hydropower projects, is facing a financial crunch and is unable to raise finances from the international financial institutions (IFIs). Wapda needs a sovereign guarantee to raise finances from the IFIs.
The Prime Minister directed that Finance Division should process Wapda's requests for sovereign guarantee for $ 200 million commercial loan and also issue a Letter of Comfort for credit rating process. Ministry of Water Resources and Wapda will also provide required documents to the Finance Division for this purpose.
The sources said when the issue of Mohmand Dam came under discussion, the chairman Wapda informed the participants that a malicious campaign has been launched against Mohmand Dam by vested interests.
The Prime Minister, source said, directed Federal Investigation Agency (FIA) to find out the forces behind initiating malicious complaints against Mohmand Dam within one month time. Wapda would take lead in investigation of this issue.
Previously, a campaign was launched to malign Prime Minister's Advisor on Commerce, Industries and Production, Abdul Razak Dawood being top boss of the company that has been awarded the contract as joint venture with a Chinese company.
The sources further stated the issue of Tarbela 4th Extension also came under discussion in the meeting as some processes of PC-I have yet to be completed by the Planning Commission. The meeting decided that Planning Commission will ensure completion of approval process of the project within two weeks. Wapda was directed to ensure timely and immediate response to any clarifications needed in this regard. Planning Commission will take lead role in approval of the PC-I.
The meeting also decided that the approval process for revised PC-I of Diamer-Bhasha Dam including alternate resettlement plan will be finalized within two weeks. Wapda will ensure timely and immediate response to any clarifications required in this regard.
Minister for Power Omar Ayub, Secretary Power Irfan Ali, Secretary Water Resources Muhammad Ashraf, chief secretary KP and chief secretary Gilgit-Baltistan will finalize a report on boundary dispute between KP and GB. The Interior Ministry will provide Frontier Constabulary (FC) to Wapda as per requisition procedures.
According to sources, undue delay in Power Purchase Agreement (PPA) for Neelum-Jhelum Company also came under discussion. The meeting decided that Power Division, Wapda and Water Resources Division should sit together and resolve this issue within two weeks.
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