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| Neelum-Jhelum project of PoK in doldrums | | |
BL KAK
NEW DELHI, May 3
The Neelum-Jhelum hydroelectric project in Pakistan occupied Kashmir (PoK), estimated to cost 1.5 billion dollars, is in the doldrums. This is reportedly the product of the inability of the Pak government and Water and Power Development Authority (Wapda) to award contract for its construction, which may result in Pakistan losing its "priority rights" over Jhelkum waters.
A project of the Water and Power Development Authority, the 969MW project has been hanging in the balance for six years, although it is considered crucial to secure Pakistan’s priority rights over Neelum waters — a tributary of the river Jhelum. According to latest reports from Islamabad, Pakistan Prime Minister, Shaukat Aziz, had taken up the project with the Chinese leadership during his recent visit and the complexities relating to Chinese bidders, but the outcome was not encouraging.
Shaukat Aziz later told reporters that the Neelum-Jhelum project was not discussed with China. Adviser to the Prime Minister on Finance, Salman Shah, has now been reported to have pointed out that financing for the project was available in the form of offers from Qatar and the Middle East, but Wapda had been asked to take a decision on the bidder as well as project structure.
The bidding for the Neelum-Jhelum project was held about a year ago. The contract could not be signed with the lowest bidder that quoted 1.3 billion dollar price for the project because it failed to arrange required buyer’s credit -– a pre-condition under the bidding.
As a result, discussions were held with the second lowest bidder that offered 1.8 billion dollars along with buyer’s credit of about 700 million dollars. However, the talks failed when Wapda found that the manufacturer of the plan and machinery for both the bidders quoted incredibly higher rates in case of the second bidder.
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