Accord for hydropower project signed
Thursday, December 20, 2007
LAHORE: The WAPDA awarded Rs93 billion contract for the construction of Neelum-Jhelum hydroelectric project to a Chinese contractor to build the river electric generation plant of 969MW capacity.
WAPDA Chairman Shakil Durrani told newsmen after the signing ceremony that the actual cost of the project would be Rs128 billion. It would include compensation to be paid to the families who would be dislocated due to construction of this project.
He said Pakistan is building this facility to augment its power needs.
Moreover, he added this would effectively establish Pakistan’s right on Neelam River as per Indus Water accord signed with India and the World Bank.
He said India has no right to generate electricity from this water and Pakistan’s stance on its Kishan Ganga project is correct.
He said the cost of electricity produced from this project would be Rs1.92 per unit it is extremely low when compared with the contracts of Rs7 per unit signed by WAPDA for recent thermal generation projects. He said the project would be completed in 93 months explaining that three tunnels of over 40km would be built it would consume a lot of time.
He said the government and WAPDA would contribute Rs60 billion for the project while the balance amount would be arranged from banks.