ECNEC Endorses Construction of 48MW Shounter Hydropower Project

The project for establishing the 48MW Shounter Hydropower Project in Neelam Valley, initiated by the government of Azad Jammu and Kashmir (AJK), received approval from the Executive Committee of the National Economic Council (ECNEC) during a meeting chaired by Finance Minister Ishaq Dar. The project, to be executed by the Power Development Organization, AJK, will be financed primarily by the Saudi Fund for Development (SFD) and AJK ADP. The updated cost of the project is Rs. 14,985 million, with 85 percent of the funding coming from SFD and the remaining 15 percent from AJK ADP.

In addition, the ECNEC also granted initial approval to a project by the Ministry of Kashmir Affairs and Gilgit-Baltistan (GB) for the establishment of regional grids in Astore, Gilgit, Hunza, and Skardu Districts in GB. The revised cost of the project is Rs. 17,425.57 million, and further reconsideration of bidding, construction, and engineering estimates will be conducted by the Planning Ministry.

Another project approved during the meeting was the 26 MW Shagharthang Hydropower Project in District Skardu, to be executed by the W&P Department of the GB government. The revised cost of the project is Rs. 18,374.44 million, which includes foreign aid/loan and local funding components.

The ECNEC also considered and approved the Khyber Pakhtunkhwa Rural Accessibility Project (KP-RAP), a project by the Khyber Pakhtunkhwa government. The project, to be executed by the Communications and Works Department, will cost Rs. 69,400 million, with the World Bank providing foreign aid/loan of Rs. 67,200 million, while the local component will be funded by the KP government. The KP-RAP aims to enhance rural accessibility in multiple districts of KP.