KFAED, Pakistan ink KD 4.5 million loan

KUWAIT: Kuwait Fund for Arab Economic Development (KFAED) yesterday signed a KD 4.5-million ($15 million) loan agreement with Pakistan to finance the Golan Gul hydroelectric project. The Project aims at meeting the electric power demand in the North West Frontier Province by developing Golen Gol Hydroelectric Power Project. The Project is located on the Golen Gol River - a tributary of Mastuj River, at about 25 km from Chitral city, said KFAED in a statement.

The Project consists of the construction of diversion weir and its related structures at Golen Gol River, one km upstream of Babukah village, construction of gravel trap, sedimentation basin, an open channel and a tunnel for diverting the river water to the powerhouse. It also includes the manufacture, supply, installation and commissioning of three Hydel generating units with total capacity of about 106 MW and their auxiliary equipment. The project also includes the manufacture, supply, installation/construction and commissioning of a 132 kV transmission line to connect the power plant to the national grid. It pointed out that the implementation of the project began at the end of 2008 and is expected to be completed by the end of this year.

The loan is the 18th of its kind provided by the Fund to Pakistan, which has already provided 17 loans totaling KD 125.3 million (about $417 million) to finance projects from various sectors. The loan agreement was signed on behalf of Kuwait’s Fund, by Deputy Director-General Ghanem AlGhunaiman and by Undersecretary of the Economic Affairs Sector at the Ministry of Finance of Pakistan, Ghonanfar Jilani, on behalf of Pakistan. The Kuwait Fund for Arab Economic Development was established on December 31, 1961, aiming at providing and managing financial and technical assistance to Arab and developing countries in support of Kuwait’s foreign policy and strengthening its global standing. — KUNA