The Water and Power Development Authority is raising over Rs 1,000 billion from local and international banks for the 969 MW Neelum Jhelum hydro power project and first phase of the run-of-river Dassu Power project, WAPDA Chairman Zafar Mehmood said on Tuesday.
He said that Rs 100 billion were being generated from local banks for the Neelum Jhelum project, while Rs 144 billion were being raised by a consortium of local banks lead by Habib Bank for the Dassu project for which another $ 800 million were being gathered from a consortium of Deutsche Bank, Citibank and Standard Chartered Bank.
The WAPDA chief said that the World Bank had helped in unlocking WAPDA’s financing ability. “It is difficult for any Pakistani entity to get liquidity over Rs 40 billion from local banks, but we have received an enormous response. We have got a loan of Rs 25 billion to pay net hydel profit to Khyber Pakhtunkhwa at very affordable terms which has surprised all,” he added.
Mehmood revealed that the WAPDA had also used the Islamic mode of financing, saying, “Islamic banks have lot more liquidity.” He said the WAPDA would look towards Islamic financing in the future for different projects.
About the Neelum Jhelum project, he said it would be completed on time as within this month the financial close for the gigantic project would be achieved. “The project was delayed as it was initiated without the financial close,” he said, adding that it even did not get the committed $ 100 million investment from Saudi fund which was necessary for the construction. The project stands 80 per cent completed with expected commission in June 2017.
