An agreement for Subsidiary Loan of $40.00 million was signed on Monday between EAD and Neelum Jhelum Hydropower Project Company.
Abdul Wajid Rana, Secretary EAD represented Government of Pakistan, while Lieutenant General Muhammad Zubair (Retd), Chief Executive Officer represented NJHPC.
A Loan Agreement amounting to $40.00 million was signed between Government of Pakistan and Kuwait Fund for Arab Economic Development (KFAED) on November 25, 2010 for purpose of construction of NJHP.
Signing a subsequently Subsidiary Loan Agreement between Economic Affairs Division on behalf of the Government of Pakistan and the NJHPC a subsidiary of Water & Power Development Authority was a legal requirement to make the loan agreement effective.
The Neelum Jhelum Hydropower Project is located at Muzaffarabad district of AJK.
Upon completion it will generate approximately 1,000MW of electricity.
KFAED is one of the donors of the project the other donors being Exim Bank China, UAE and Saudi Fund for Development.
The project aims at developing national power generation system to meet the increasing electricity demand in the country and indigenous renewable energy resources namely the hydro resources.