Neelum-Jhelum power project awarded to Chinese firm

Lahore: Water and Power Development Authority on Wednesday awarded contract of 969 MW Neelum-Jhelum hydroelectric project costing Rs 90.9 billion to a top class Chinese firm to be executed by 2015.

Speaking on the occasion after the singing ceremony, Wapda Chairman Shakeel Durrani said the total cost of the project is Rs 128 billion, which also includes acquisition of land and other expenditures.

He said 5.15 billion units worth Rs 25 billion will be produced annually with excellent 26 percent rate of return which is highest than all other existing projects in the country. About the funding, Shakeel said Rs 60 billion will be arranged by the Government of Pakistan and Wapda while the remaining will be managed through banks. Regarding the security of staff at the site, he said foolproof arrangements have already been made at all under-construction projects across the country.

He said energy is the basic ingredient of development of a country. The fast-growing energy requirements in Pakistan needed to be met to achieve full economic and social development.

The chairman said the government is focusing on the development of indigenous hydropower resources, as Pakistan possessed colossal potential, which can be fully exploited on long-term basis for provision of power at much lower costs. Member (Water) Muhammad Mushtaq Chaudhry, Member (Power) Fazal Ahmad Khan and other senior officials of both the stakeholders were present on the occasion.