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Signature of a Supplementary Loan Agreement for Kuwaiti Dinars 4,500,000 for financing the Golen-Gol Hydropower Project in the Islamic Republic of Pakistan
A Supplementary Loan Agreement was signed today in Islamabad between the Islamic Republic of Pakistan and Kuwait Fund for Arab Economic Development whereby the Fund will extend a loan of Kuwaiti Dinars four million five hundred thousand (KD. 4,500,000/-) (i.e. equivalent of 15 million US$) to help finance the Golen-Gol Hydropower Project. 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 Mr. Syed Ghazanfar Abbas Jilani, Secretary, Economic Affairs Division, and on behalf of the Fund by Mr. Ghanem Sulaiman Al-Ghenaiman, Deputy General of the Kuwait Fund for Arab Economic Development in attendance of Mr. Fahad Al-Mezaal, Charge d'affaires
in State of Kuwait embassy to Pakistan and Mr. Fawaz Al-Adasani, Assistant Regional Manager for East South Asia and Pacific countries at the Fund.
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 25 Km 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 198 km 132 kV 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 US$316 million equivalent to about KD. 95 million.
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 125.3 million Kuwaiti Dinars equivalent to about 417 million U.S. Dollars for financing projects in various sectors.