Neelum Jehlum HP Project financing issue resolved 

Neelum Jehlum HP Project financing issue resolved 

LAHORE: (APP) Pakistan Industrial and Traders Associations Front (PIAF) Monday greeted the WAPDA and National Bank of Pakistan (NBP) for entering into a financing agreement of Rs 100 billion under public-private partnership through a consortium of 16 banks under Shariah compliant facility for Neelum Jehlum Hydro Power Project for its timely completion.

Talking to media here, the PIAF Chairman Irfan Iqbal Sheikh said that two of the major financers had interrupted the supply of funds, amounting to more than $100 million to Pakistan for 969 MW NJHP.

He said that accumulated progress on the NJHP during the last eight years was recorded at 78 percent, and so far an amount of more than Rs180 billion had been spent on the project out of which Rs 39 billion was being generated through Neelum-Jhelum Surcharge through electricity bills.

Irfan Iqbal Sheikh said that now, with this historic deal a ray of hope appeared for completion of the project leading to end of power load-shedding being faced by the industry in the country.

"This is the biggest ever funds mobilization for a public sector entity in which 16 local banks have participated. Achieving this milestone reflects not only investors' confidence in the Federal government and WAPDA but also indicates the potential of investment that hydropower sector offers in the country," he observed.

He expressed gratitude to the government for continuous support in arranging this landmark deal. The issuance of Sukuk worth Rs 100 billion for NJHP Project would go a long way in arranging funds for other hydropower projects as well to be initiated in the country in near future.

This Sukuk will also provide avenues for Islamic Banks to invest their funds in a tradable government guaranteed Islamic instrument, he added.