By SPA
Islamabad : President Pervez Musharraf Saturday launched US 2.16 billion (Rs 130 billion) Neelum-Jhelum Hydroelectric project aimed at producing 969 MW power and helping Pakistan meet its increasing energy requirements.
Terming it a very important project, the president said it will have far reaching strategic implications and added that it will be completed with the Chinese assistance in eight years.
He described it as yet another symbol of the Pak-China friendship and said it will contribute towards the economic progress of the country.
Under the project water from the Neelum river will be diverted through a 47 km long tunnel. A power house will be constructed at Chattar Kalas, 22 km south of Muzaffarabad (capital of Azad Kashmir) and the water will be released in river Jhelum. The project will produce 5.15 billion units of electricity annually.
Musharraf said the ongoing power shortage in Pakistan needed to be addressed swiftly. He said Pakistan has immense coal reserves at Thar (Sindh) and described these as one of the largest in the world, that could be utilised to generate electricity. He pointed that China was meeting 70 per cent of its energy needs through coal.
He said work was on at the Thar Coal but said it was a long-term project and will take some time to complete.
The president said in 2001 Pakistan had 4000 MW power in excess, but with the booming economy and rapid industrialisation things changed rapidly and today the country was facing a shortage of both electricity and gas.
He said there have been some lapse in this regard, as there should have been more focus on rapid generation of power to cater to the growing demand.
It is regrettable that nothing had been done to generate hydropower in the past 30 years, the president said.
Musharraf said at least feasibility for other projects should have been prepared, while controversial debate on the Kalabagh dam was going on. He pointed out that now work has begun on the Diamer Basha Dam and after completion, it will help the country meet its energy demand.
The president said currently there was a need for generating energy to meet the short term requirements and said the recent discoveries of gas in North West Frontier Province or NWFP and Sindh will help produce thermal energy.
He said under the short term planning 2000 MW of electricity will be produced by the end of this year, while another 3500 MW will be generated by the end of next year.
Musharraf particularly thanked the Chinese government for its assistance and said several other projects; like the expansion of the Karakoram Highway will further strengthen the bonds between the two countries.
Chinese Ambassador to Pakistan Luo Zhaohui said his government has always cherished its ties with the people of Pakistan and were working on several projects to strengthen their economic bonds.
He expressed optimism that the Sino-Pak ties will further strengthen in the days ahead and said the Chinese investors were fully confident of investing in Pakistan. He said the Neelum-Jhelum Hydroelectric project was the largest in Pakistan and hoped that security would be ensured for its workers.