Subsidiary Loan Agreement signed between Economic Affairs Division and Neelum Jhelum Hydropower project Company

Islamabad: The Subsidiary Loan Agreement of US $ 40.00 million was signed here on Monday between EAD and Neelum Jhelum Hydropower Project Company (NJHPC). Mr. Abdul Wajid Rana, Secretary Economic Affairs Division represented the Government of Pakistan while Lt. Gen. ® Muhammad Zubair , Chief Executive Officer represented the NJHPC.

The Neelum Jhelum Hydropower Project is located at Muzaffarabad district of AJK. Upon its completion it will generate approximately 1000 MW of electricity. Kuwait Fund for Arab Economic Development (KFAED) is one of the donors of this project; the other donors being Exim Bank China, UAE and Saudi Fund for Development.

A Loan Agreement amounting to US $ 40.00 million was signed between Government of Pakistan and Kuwait Fund for Arab Economic Development on 25th November, 2010 for the purpose of construction of Neelam Jhelum Hydropower Project.

Signing a subsequently Subsidiary Loan Agreement between Economic Affairs Division on behalf of Government of Pakistan and NJHPC, a subsidiary of WAPDA was a legal requirement to make the Loan Agreement effective.

This project aims at developing the National Power Generation System to meet the increasing electricity demand in the country and indigenous renewable energy resources namely the hydro resources.

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