Sovereign guarantee to KP for hydel projects

Published: Sun 28 Feb 2016, 4:21 PM

Following up on the settlement of claims of the Khyber Pakhtunkhwa government on past arrears for hydel power dues totalling Rs70 billion in four years, the government extended credit guarantees to the province to help set up new hydro-power projects.
"If the Khyber Pakhtunkhwa government puts the Rs70 billion (settlement which the federal government will pay) in equity, the federal government can provide Rs280 billion in credit guarantees," Finance Minister Ishaq Dar offered the Pakistan Tehreek-e-Insaaf-led government on the floor of the National Assembly.
On Thursday, the federal and Khyber Pakhtunkhwa governments settled on a payment of Rs70 billion for hydel power arrears. Dar, however, was quick to remind the provincial government that energy produced in any part of the country is pooled into the national grid from where it is distributed as per quota.
The finance minister also welcomed suggestions from Mahmood Khan Achakzai to install a hydel-power project on the Swat River and Aftab Ahmad Sherpao's call for assisting the Khyber Pakhtunkhwa government in installing energy projects in the province.
During Friday's session, the House also passed a bill to promote energy conservation in the country amid crippling energy shortages. The Opposition did not oppose the bill.

By Afzal Khan

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