Pakistan To Build $1.6 Billion Hydro Project In Disputed Kashmir Area
ISLAMABAD -(Dow Jones)- Pakistan's federal government will construct a 969 megawatt hydropower project at a cost of $1.6 billion in Pakistan-controlled Kashmir, the country's caretaker Finance Minister Salman Shah said Wednesday.
The Neelum-Jehlum Hydropower Project will be built by a consortium consisting of China Gezhouba, CMEC China and Neelum-Jehlum Project Co., a government-owned unit.
"To finance the project, a 10 paisa-per-unit tax will be imposed, which will collect $100 million per year for eight years. For the remaining $800 million, Islamic bonds will be issued on the international market," Shah told Dow Jones Newswires.
The company will later issue shares on the stock market and will be able to issue Global Depositary Receipts as well, Shah said.
The project, which is expected to take eight years to complete, involves diverting water through a 47-kilometer tunnel to power stations.
-By Islamabad Bureau; Dow Jones Newswires; 91 22 22884212; djn.in@dowjones.com .
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