Financing for WAPDA Projects Discussed

Financing for WAPDA Projects Discussed

Lahore – November 11, 2016: The Pakistan Water and Power Development Authority (WAPDA) Chairman Lt Gen Muzammil Hussain (R) discussed the matters relating to financial arrangements for its under-construction as well as future projects in three separate meetings held today at WAPDA House.

Pic KfW Delegation 600x432

In a meeting with the German delegation, led by Dr. Henning Plate, Head of German Ministry for Cooperation and Development Division for Pakistan and Afghanistan.

Addressing the delegation, the Chairman said that WAPDA values the support of international financial institutions and donor agencies – particularly the KfW of Germany – for implementation of the projects in vital sectors of water and hydropower in Pakistan. Highlighting the significance of the foreign funding, he expressed the hope that the cooperation between the KfW and WAPDA will further strengthen in the future projects as well.

Dr. Henning Plate said that Germany has long standing relationship of mutual cooperation with WAPDA, adding that they are considering fast implementation of the projects. In addition to other issues, scope for four WAPDA projects being funded by KfW and institutional arrangement were also discussed in the meeting.

It is pertinent to mention that Germany is providing financial support for four WAPDA projects i.e. Keyal Khwar Hydropower Project, Harpo Hydropower Project, Warsak Dam Rehabilitation Project and Glacial Monitoring Project.

In another meeting with Dr. Demetrios Papathanasiou, World Bank’s Practice Manager for Energy and Extractives South Asia Region, the progress on two mega hydropower projects funded by the World Bank namely 1410 MW-Tarbela 4th Extension and 2160 MW-First Stage of Dasu were discussed in detail. The perspective for World Bank’s financing for Tarbela 5th Extension Hydropower Project was also dilated upon during the meeting.

A delegation comprising State Bank of Pakistan Deputy Governor Saeed Ahmad, Mezan Bank President Irfan Siddiqui and Al Baraka Bank President Shafqaat Ahmad also called on WAPDA Chairman. Speaking on the occasion, the Chairman said that WAPDA hydropower projects offer lucrative opportunities due to their high rate of returns for both foreign and local financial institutions. He expressed satisfaction that WAPDA carries a very good international credit rating. The possibilities for utilizing Islamic mod of financing for WAPDA projects were discussed during the meeting. It is worth mentioning here that WAPDA has already arranged Rs.100 billion through Sukuk (Islamic Bond) for its 969 MW-Neelum Jhelum Hydropower Project.