The Exim Bank of China and Pakistan have signed an agreement, whereby the bank will provide funds of $448m to finance Neelum Jhelum hydropower project in the country.
The 969MW hydro project is being developed by Water and Power Development Authority (Wapda) on the Neelum River on Pakistan side of Jammu and Kashmir.
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In a statement, Wapda said that the agreement is a significant step in authorities’ efforts of securing funds to proceed with the remaining work on under-construction Neelum Jhelum project.
The hydropower project is estimated to produce about 5.15 billion units of low-cost electricity every year, alongside providing annual benefits of PKR45bn ($452.8m) to the country’s economy.
Wapda, meanwhile, is keen to complete the project within the scheduled timeframe ending 2016.
The construction at all sites of the project is said to be in line with the set plans.
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By GlobalDataAbout 34.24km, representing 51% of the 67km tunnel stretch, has been dug, while excavation operations of an underground power house stands at 75.24% with 96.33% work completed at transformers hall.
Further, second stage diversion of the River Neelum has also been completed.
Besides producing low-cost hydroelectric power to cater to electricity requirements in the country, the project is planned to establish priority rights over water.
India is also constructing a hydro project upstream of Neelum Jhelum project to acquire rights over water by completing the project before Pakistan.
