KP approves plan to procure Rs32bn loan for hydropower projects

PESHAWAR: The Khyber Pakhtunkhwa (KP) government has approved a plan to procure a loan of Rs32 billion from the World Bank for reconstruction and development of hydropower projects in the province over the next seven years.

According to details, the KP government has formulated a plan, worth over Rs116.35 billion, to utilize hydropower and renewable energy resources in the province, of which the Pakhtunkhwa Energy Development Organization (PEDO) would procure a loan of Rs32 billion from the WB.

The World Bank’s International Development Association would also invest Rs40 billion in this regard. In addition, the KP government would borrow Rs29.6 billion from local commercial banks, besides spending Rs14.72 billion from its own resources.

According to documents, PEDO would collect the loan and would be responsible for the loan and interest repayment. Of the total amount, Rs60 billion would be spent on hydropower projects, including the 88-megawatt Gabral Kalam hydropower plant, and installation of turbines, generators and electromechanical equipment for various power plants in Madian and Swat. Hydropower facilities would also be provided at these locations.

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“An amount of Rs4 billion would be spent on institutional strengthening in the energy sector; Rs3 billion would be spent to oversee social management planning, economic development of local population and environmental improvement,” the document read.

The projects would run for seven years and will receive Rs72 billion in installments by 2027. Of the total, $10 million would be received in 2021, $25 million in the second year, $75 million in third year, $95 million in fourth year, $90 million in fifth year, $90 million in sixth year, and $65 million in 2027.

During the implementation of the projects, PEDO would be responsible to take care of environmental protection, environmental standards and the health of local people and would be required to submit quarterly report to the provincial government.

Budget review, including the annual work plan, would be completed in March every year.

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