$32m Kuwait loan for power project

Neelum Jhelum Hydropower Project to generate 1000MW of electricity

Pakistan and Kuwait yesterday inked an additional loan agreement of $32 million (Dh118 million) for Neelum Jhelum Hydropower Project (NJHP).

Saleem Sethi, Secretary Economic Affairs Division, and Hamad-ul-Umer, Deputy DG Kuwait Fund, represented the Governments of Pakistan and Kuwait and signed the agreement. Finance Minister Ishaq Dar and Kuwaiti ambassador Nawaf Abdul Aziz were also represented in the signing ceremony.

Finance Minister Ishaq Dar welcomed the agreement between the two countries.

Boost ties

Appreciating Kuwait efforts in development of Pakistan, the minister said that both countries enjoy strong and reliable relationship and this accord would boosts ties between two brotherly countries.

He said that the government and people of Pakistan are grateful to Kuwaiti leadership and its people for their permanent support to Pakistan.

Dar said that this project would help Pakistan to produce low cost electricity and helpful to end energy crisis in the country. The Neelum Jhelum Hydropower Project is located at Muzaffarabad district. Upon its completion it will generate approximately 1000MW of electricity.

Kuwait Fund for Arab Economic Development (KFAED) is one of the donors of this project; the other donors being Exim Bank China, the UAE and Saudi Fund for Development.

Earlier, a loan agreement amounting to $40 million was signed between Government of Pakistan and Kuwait Fund for Arab Economic Development on November 25, 2010 for the purpose of construction of Neelam Jhelum Hydropower Project.