China bails out Pakistan in hydropower race with India

The $448 million loan for Pakistan's 969 megawatt Neelum-Jhelum hydropower project has been approved by China's EXIM bank.

Current slowdown in the pace of construction provided an edge to India, which is building Kishanganga
project on the same Neelum River on its side of the Kashmir.

According to the Indus Water Treaty, the country that first completes its project on Neelum tributary will have priority rights on the water of Neelum River.

With the approval, China has bailed out Pakistan and concerns over the slowdown in pace of completing the project have evaporated.

Officials said now the project will be completed on time in 2016 as $93 million high-tech tunnel boring machines have arrived on the site of the project which would help expedite the project may be even before the
time schedule.

"The loan is a commercial buyer credit in nature," said Dr Waqar Masood, secretary of the Economic Affairs Division, about the $448 million loan for the project.

"China has emerged as the largest development partner and creditor of Pakistan in the last three years and its loan portfolio has increased to whopping $3.3 billion," he said, adding that the loan will be disbursed in a span of more than one month.

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