Neelum-Jhelum project: Govt asked to revoke mark-up on loans it gives
PHOTO: REUTERS
ISLAMABAD: The Water and Power Development Authority (Wapda) has asked Prime Minister Nawaz Sharif to revoke a mark-up on unfamiliar loans that are upheld along by a sovereign supervision for hydroelectric energy projects during a most aloft rate than a one charged by creditors.
“The ask comes as a supervision is fluctuating a unfamiliar loan to Wapda for a 969-megawatt Neelum-Jhelum hydroelectric energy devise during a really high mark-up of 15% per annum,” a comparison central of a Ministry of Water and Power pronounced while articulate to The Express Tribune.
Neelum-Jhelum: 92% work on devise completed
The high mark-up will eventually weight a consumers with increasing electricity tariff.
The sovereign supervision borrows income from unfamiliar creditors during a reduce mark-up, though a Economic Affairs Division transfers these loans to opposite entities including Wapda during an arrogant rate of adult to 15%, that is eventually collected from a consumers.
Wapda Chairman Muzammil Hussain took adult a matter in a high-level meeting, chaired by a primary minister, on Apr 18. “These mark-up rates might be revised gripping in perspective a rates germane to provinces,” he said.
Water and Power Minister Khawaja Muhammad Asif argued that any rebate in a mark-up would have a long-term impact on energy tariff for a project.
Secretary to a primary apportion told a assembly that re-lending of government-negotiated loans always came during aloft rates according to a process in practice and a rider sought by Wapda would need process change.
The primary apportion destined that a matter should be taken adult in a participation of Finance Minister Ishaq Dar.
The government’s devise to finish electricity outages in 2018 has suffered a reversal as work on dual vital hydroelectric energy projects has dragged on.
In a assembly hold in Jun 2015, a primary apportion had been told that a Neelum-Jhelum energy devise would not come online in 2016 and work might be extended into 2017. Now, a premier has been familiar that work would usually be finished in Apr 2018.
Owing to a delay, a supervision has got abdication of former Wapda authority Zafar Mahmood. The new conduct has, however, given assurances to a supervision that work would be over as early as possible.
In a Apr 18 meeting, a Wapda arch spoke about swell on a Neelum-Jhelum and Tarbela 4th prolongation energy projects.
He pronounced first, second and third units of Neelum-Jhelum devise would start operations by Feb 28, 2018, Mar 15, 2018 and Apr 15, 2018 respectively. After completion, a plant would furnish 969MW and beget annual revenues of $460 million.
During a prior Pakistan Peoples Party-led government, a estimated cost of Neelum-Jhelum devise had left adult to $2.74 billion from $1.8 billion and during a reign of a stream administration it serve jumped to $4.21 billion.
WAPDA to supplement 2,485MW of inexpensive electricity by mid-2018
In sequence to secure H2O supplies, Pakistan kicked off work on a Neelum-Jhelum River in Azad Jammu and Kashmir, though during a same time India started building Kishanganga hydroelectric energy devise on a river, that sparked authorised conflict between a dual countries in a International Court of Arbitration.
The Neelum-Jhelum devise had progressing been slated for execution by Oct 2015, though a deadline was revised to Nov 2016 and now to Apr 15, 2018.
Published in The Express Tribune, Apr 29th, 2017.
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Article source: https://tribune.com.pk/story/1396235/neelum-jhelum-project-govt-asked-reduce-mark-loans-gives/