Economic Co-ordination Committee (ECC) of the Cabinet has allowed National Transmission and Dispatch Company (NTDC) to raise Rs 17 billion from local banks for laying a transmission line to transfer power from 969 MW Neelum Jhelum Hydropower Project, official sources told Business Recorder. Giving the background, sources said a transmission scheme for evacuation of power from Neelum-Jhelum Hydropower project was approved by Executive Committee of National Economic Council (ECNEC) on August 28, 2013 at a total cost of Rs 22.582 billion.
According to the approved PC-I, the work was awarded to Chinese contractor on buyer's credit by Managing Director NTDC on September 12, 2013. But Board of Directors (BoD) NTDCL in its 78th meeting held on January 03, 2014 resolved unanimously not to ratify the orders of MD NTDCL due to some procedural lapses as per PPRA rules. However, the management of NTDC approved plan 'B' for implementation of the subject project.
The sources stated that as per Prime Minister's directives, the first unit of 969 MW Neelum Jhelum HPP would be operative by December, 2015 for which NTDCL has to complete the priority portion of transmission line on or before September 30, 2015 for evacuation of power from the above said hydro power project.
In order to execute the plan 'B' on a fast-track basis, revised PC-I amounting to Rs 21.697 billion including FEC Rs 11.272 billion (@PKR 99.65/US$) is under process of approval from the competent forum. Bids have also been processed and are under evaluation according to given time lines.
"Water and Power Ministry is of the view that as no funding is available from any financing agency, NTDC has decided to implement the project through its own resources. For this purpose, local banks have been approached who have shown their willingness to provide funding for the subject project to the tune of Rs 17 billion against sovereign guarantee," the sources added.
The sources further stated the Ministry of Water and Power also requested the ECC to allow issuance of GoP guarantee to the banks once the finance arrangements made by NTDC were approved by the Finance Division. Ministry of Water and Power has been directed to get clearance of terms and conditions of the financing arrangements from the Finance Ministry.