By Khalid Mustafa in The News, May 23
ISLAMABAD: China’s EXIM bank has approved the much-awaited loan of $448 million for the strategic 969 megawatt Neelum-Jhelum hydropower project following which the construction work on the project is likely to get accelerated, officials said.
They said it would provide solace to the Neelum-Jhelum hydropower project company as the project that was earlier feared to get delayed on account of cash flow constraints. Current slowdown in the pace of construction provided an edge to India, which is building Kishanganga project on the same Neelum River on its side of the Kashmir.
According to the Indus Water Treaty, the country that first completes its project on Neelum tributary will have priority rights on the water of Neelum River. Now with the approval of $448 million loan for the project, China has bailed out Pakistan and concerns over the slowdown in pace of completing the project have evaporated.
Officials said now the project will be completed on time in 2016 as $93 million high-tech tunnel boring machines have arrived on the site of the project which would help expedite the project may be even before the time schedule.
Dr Waqar Masood, secretary of the Economic Affairs Division, when contacted confirmed that China’s EXIM bank has approved the loan of $448 million for the project. “The loan is a commercial buyer credit in nature.”
“Now the government is in process of completing the required documentation to submit with the Chinese bank,” he said, adding that the loan will be disbursed in a span of more than one month.
“China has emerged as the largest development partner and creditor of Pakistan in the last three years and its loan portfolio has increased to whopping $3.3 billion.” http://www.thenews.com.pk/Todays-News-3-109841-China-approves-$448-million-loan-for-Neelum-Jhelum-project
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