960425

Germany to give

DM 220 million for

Ghazi Barotha

power project

TANVIR ZAHID

LAHORE: Germany will be contributing DM 220 million as financial contribution for Ghazi Barotha Hydropower Project which was in its initial stages now with preliminaries at various being completed.

According to the official sources, German financial assistance through KFW would be utilised for financing two turbines, penstocks, transformers scada and other equipment.

The financial assistance for Ghazi Barotha Hydropower Project had figured prominently when progress and implementation of German-assisted projects in various sectors and those being considered for possible financing were discussed at some length at periodical review meeting between Pakistan and German officials in Islamabad recently.

The meeting was informed that the Germany Government had committed an amount of DM 73 million as a loan at 0.75 percent interest, 40 years maturity including a grace period of 10 years.

Both sides also agreed to reprogramme DM 7 million residual funds out of 1992 and 1990 commitments viz DM 3.5 million "Telecommunication V Phase IV" and DM 3.5 million "Guddu Gas Turbine Power Plant" for the project.

The sources pointed out that to secure overall financing of DM 220 million, an additional loan of DM 40 million at market rates will be provided by KFW in addition to above-mentioned figure of DM 180 million with break-up.