01.12.2010, Jeddah, The Islamic Development Bank Group approved a US$ 220 million financing for the Neelum-Jhelm Hydro Power Plant Equipment in Pakistan. Under the approval, the leasing facility shall be extended to the government of Pakistan with a duration of 15 years after a 5 year gestation period. Other financiers to the project include Saudi Fund for Development (SFD), Kuwait Fund for Development (KFD), Abu Dhabi Fund (ADF), OPEC Fund for International Development (OFID) and Export Import (EXIM) Bank of China.
The Power plant forms an essential part of the Government of Pakistan’s strategy to meet the presently existing power generation capacity deficit of over 4000 mega watts. It involves the construction of a run-of-the-river Hydro Electric Power Plant with an installed capacity of 969 mega watts capable of producing 5,150 GWH per year.
IDB Group has scaled up development, reconstruction and rehabilitation efforts in Pakistan since a recent natural disaster hit the country when back in July 2010 heavy monsoon rains washed away millions of homes, shops and livelihoods leaving millions of people in need of basic commodities.