Water and Power Development Authority raises Rs 9.3 billion by issuing Term Finance Certificates in collaboration with lead banks of Pakistan
Lahore, October 01, 2013 (PPI-OT): In what can be termed as a significant development towards arrangement of financial resources to expedite the construction work on the 969 MW-Neelum-Jhelum Hydropower Project, the Pakistan Water and Power Development Authority (WAPDA) has raised Rs. 9.3 billion by issuing Term Finance Certificates (TFCs) in collaboration with the lead banks of Pakistan, and with a PACRA rating of AAA. With active involvement of the Minister of State for Water and Power Chaudhry Abid Sher Ali for issuance of TFCs, this organizational resource mobilization will also serve as a precedent for arrangement of funds for future hydropower projects in the country.
This achievement was made possible within five days following Minister of State for Water and Power Chaudhry Abid Sher Ali’s visit to the site of Neelum Jhelum Hydropower Project. The Minister of State had promised to resolve issues pertaining to the project including the much-needed financial resources on war-footing basis.
The arrangement of the amount is manifestation of his resolve. He personally pursued the matter with the ministries of Water and Power and Finance for finalization of the process of TFCs issuance.
The amount to be paid to the contractor of Neelum-Jhelum Hydropower Project will enable WAPDA to expedite the work on the project. It may be pertinent to mention here that Prime Minister Muhammad Nawaz Sharif, during his visit to Neelum-Jhelum Hydropower Project two months ago, had directed WAPDA to make sure that the project starts generating electricity by the end of 2015.
In line with the directions of the Prime Minister, the ministry of Water and Power and WAPDA are making earnest efforts to ensure completion of the project before time. It is in this context that Rs. 9.3 billion arranged through TFCs will go a long way in expediting the construction on the project.
Neelum-Jhelum is a strategically important project. The project is complete by 51%. Out of total 67-km tunnels, about 40 km long tunnels (59%) have so been excavated with the help of two state of the art TBM machines, while excavation of underground power house station stands at 90.6%, and transformers hall at 100%. On completion, NJHPP will contribute 5.15 billion units of electricity to the national grid every year. Annual benefits to accrue from the project have been estimated at about Rs. 45 billion.
For more information, contact:
Muhammad Abid Rana
Director Public Relations
Water and Power Development Authority (WAPDA)
G-32, WAPDA House, Lahore
Tel: +9242 9920 2633 and +9242 9920 2211 -2033 -2029
Cell: +92333 445 8293
Category: General Business News