ISLAMABAD: The strategic 969MW Neelum-Jhelum hydropower project is facing serious financial constraints and despite the prime minister’s instructions, it is feared that none of its units could be operational next year due to lack of finances.
However, Minister of State for Water and Power Chaudhry Abid Sher Ali is optimistic that the project would be completed on time. He directed convening an emergency meeting of board of directors to counter financial issues of the Neelam Jhelum hydropower project.
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According to a handout of the Ministry of Water and Power, the minister visited Neelum Jhelum Hydropower Project in Azad Jammu and Kashmir and reviewed the pace of work.
Sher Ali, during his visit, agreed that continuous cash flow was pertinent for early completion of the project. He said that all-out efforts were being made to address certain financial challenges.
The minister also quoted that despite of all challenges including financial and rock bursting in the tunnels they were determined to bring this project in national grid on war footings.
The state minister visited various sites of the project including powerhouse, transformers hall, and main dam. He also observed the operation of tunnel boring machines.
It is to be noted that fiscal problems reportedly stemmed from the Economic Affairs Division inability to arrange $475 million (Rs47.5 billion) from local or international banks and financial institutions for almost four years.
Wapda Chairman Zafar Mehmood had told a Standing Committee meeting recently that arrangement had been made for additional financing of $68 million to ensure the commissioning of first unit (242MW) of Neelum Jhelum hydropower project, scheduled to be completed in December 2015.
The project CEO last month conveyed to government that due to shortage of funds it would not be possible to continue work on project in January 2015.
