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Pakistan asked to delay Neelum-Jhelum hydropower project
ISLAMABAD, Nov 21 : A French power sector firm Vinci has asked the government to delay 969 MW Neelum-Jhelum hydropower project for three months, citing earthquake as the reason, while the officials affiliated with the project want to start construction work without wasting further time.
Sources said the company for which tendering process for the project was delayed twice (for three months) has stunned the government by suggesting that the project should be shelved for three months more fearing chances of aftershocks.
"The project is of sensitive nature for Pakistan as India is constructing 330MW Kishanganga hydroelectric power project on river Neelum in occupied Kashmir and any further delay will be considered criminal negligence," said the senior officials, who requested not to be mentioned.
The sources further said that Prime Minister Shaukat Aziz also showed deep concern about the proposal given by the company and most probably would chair a meeting within a couple of days for making the final decision.
According to the official, the Prime Minister Secretariat had asked the Ministry of Water and Power to give the names of companies, which were interested in undertaking the project as some of the Chinese companies had approached the PM to get the contract during his previous visit to Beijing.
The sources further said that the Water and Power Development Authority (Wapda) had also pressed the government to award the project to any internationally reputed firm so that it could be completed as early as possible.
The project was initially approved by Ecnec on December 31, 1989 at a cost of Rs 15.012 billion, which was revised at a total cost of Rs 84.5 billion with FEC of Rs 46,667.70 million.
Local component of cost was to be met from Wapda's own resources while FEC through foreign aid. The estimate was later revised at Rs 95.36 billion.
The gross head of the project is 420 feet and will generate 969 MW of electricity through 17-km long tunnel by diverting water of Neelum River to Jhelum River.
Efforts were made to arrange financing of the project.
The Wapda invited _expression of interests in June 2002. But the process was abandoned because of unsatisfactory response and that none of the firms indicated any financing arrangement. Subsequently, the Wapda started entertaining unsolicited proposals. Thirteen companies submitted their documents out of which Wapda short-listed four Chinese companies.
However, all of these companies sought equity (20 to 40 percent) from Wapda and the government guarantees for the loan.