Kuwait Fund for Arab Economic Development (Kuwait Fund) has signed an agreement to provide KD4,500,000 ($15m) loan to help develop the Golen-Gol hydropower project in Pakistan.It is worth mentioning that the Fund is a Kuwait Public Corporation which relies entirely on its own resources for making loans and providing other kinds of development assistance.
The Loan Agreement was signed on behalf of the Islamic Republic of Pakistan by economic affairs division secretary Syed Ghazanfar Abbas Jilani, and on behalf of the Fund by Kuwait Fund for Arab Economic Development deputy general Ghanem Sulaiman Al-Ghenaiman, in attendance of Fahad Al-Mezaal, Charge d’affaires.
The Project aims at meeting the electric power demand in the Khyber Pakhtunkhwa (KPK) by developing Golen-Gol Hydroelectric Power Project. The Project is located on the Golen Gol River, a tributary of Mastuj River, at about 25km from Chitral city.
The Project consists of the construction of diversion weir and its related structures at Golen Gol River, one km upstream of Babukah village, construction of gravel trap, sedimentation basin, an open channel and a tunnel for diverting the river water to the powerhouse.
Also, it includes the manufacture, supply, installation and commissioning of three Hydel generating units and their auxiliary equipment. The Project includes as well the manufacture, supply, installation / construction and commissioning of a 198km 132kV transmission line to connect the power plant to the national grid. The Project implementation started in late 2008 and is expected to be completed by the end of 2018.The total updated cost of the Project is estimated at about $316m equivalent to about KD95m .
The Supplementary Loan shall be for a period of 23 years including 3 years grace period. The Original and Supplementary Loans (the Consolidated Loans), will be amortized on 45 semi-annual installments, the last of which shall be due on 15/09/2039. The Consolidated Loans bear interest at 1.5% per annum, in addition to 0.5% per annum to cover administrative and other expenses to be incurred in the implementation of the Loan Agreements.
By concluding this agreement, it will be the 18th loan that the Fund provided to the Islamic Republic of Pakistan, where the Fund previously provided 17 loans amounting to about KD125.3m equivalent to about $417m for financing projects in various sectors.
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