According to official sources, Pakistan and the Asian Development Bank (ADB) have signed a $300 million financing agreement for the Balakot hydropower development project.
Minister for Economic Affairs Omar Ayub Khan and Khyber Pakhtunkhwa (KP) Chief Minister Mahmood Khan witnessed the signing of the loan agreement by Economic Affairs Division (EAD) Secretary Noor Ahmed and ADB Acting Country Director Ms Cleo Kawawaki.
The total cost of the Balakot hydropower development project is US$ 755 million, with the Asian Development Bank (ADB) contributing $300 million and the Asian Infrastructure Investment Bank (AIIB) contributing $280 million.
According to the spokesperson, the ADB is funding the project for a total of 27 years, including a seven-year grace period, at extremely concessional rates (LIBOR six-month + 0.5 percent per annum – currently 0.7 percent per annum).
The run-of-river hydropower project will be built on the Kunhar River in the Mansehra district, and will produce 300 megawatts of electricity, according to Omar Ayub Khan, who spoke at the event.
