Neelum-Jhelum: Abu Dhabi Fund withholds $100 million loan for power project
The ADF provides development aid to developing countries in the form of concessionary loans and grants on behalf of the Abu Dhabi government.
“The loan agreement of $100 million is pending with the ADF because it has linked it to the resolution of payment issue with Etisalat in the PTCL privatisation process,” Lt Gen (R) Muhammad Zubair, the managing director of Neelum-Jhelum hydropower company, told the National Assembly Standing Committee on Economic Affairs Division.
Zubair informed the committee, which met under the chairmanship of Pirzada Imran Ahmed Shah, that the loan agreement of $448 million with Exim Bank China was also pending as China State Council was yet to give the go-ahead.
Financial constraints were further delaying the project that was supposed to be completed by 2016, he said.
“The Neelum Jhelum Hydropower Company has not been able to open Letter of Credit (LC) to procure equipment and material for the project against financing of $113 million by Islamic Development Bank (IDB) and this issue has been taken up with the company board,” he added.
Published in The Express Tribune, September 29th, 2012.
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Please raise the money locally on the stock market in the form of BONDS or STOCK. People of PAKISTAN will invest in these kind of PROJECTS. IN 1960's US govt built high way's system all over the country by issuing BONDS for 5,10,15 and 30yrs BONDS. By now all the BONDS are paid off with the income from TOLL TAXES. Why can't we follow this kind of example? Govt official should think out of the BOX
Ptcl, where etisalat is yet to pay 800m it owes to government? They will release this loan if the government stops asking them to pay up?
What was the original start up date for Neelum Jhelum Project? +++++++++++++++++++++++++++++++++++++++++++ Like a mango tree that one generation seeds for the next.
Well, that is acceptable enough. PTCL should get its act right and sort out the money issue first, it's simple and logical. No need to politicise this further.
seems like the saudis are not so sure if pakistan will return the money............
Good
Blackmailing by a so-called friend??