Kuwait has signed a loan agreement to finance development of the Golen Gol Hydroelectric Power Project, northern Pakistan.

The Kuwait Fund for Arab Economic Development (KFAED) signed the deal with Pakistan on Wednesday, 12 April, to pump $15m (KWD4.5m) into the Golen Gol Hydroelectric Power Project.

A low head dam, or weir, a gravel trap, sedimentation basin, and a tunnel for diverting river water to a powerhouse will be built to as part of efforts to develop the hydroelectricity project. 

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Three hydroelectricity units capable of generating 106 megawatts (MW) of power will be manufactured, supplied, and installed. A 120 kilovolt (kV) transmission line connecting the energy plant to the national grid will also be constructed.

Pakistan’s Golen Gol Hydroelectric Power Project is 25km from Chitral, the northernmost region of the country. The project aims to meet the electricity needs of people living in Khyber Pakhtunkhwa, previously known as the North-West Frontier Province until 2010.

The Golen Gol Hydroelectric Power Project was implemented in the fourth quarter of 2008 and KFAED report that the development work it has funded will be completed toward the end of 2018.

It is the eighteenth time that KFAED has provided financial support to various Pakistan economic development projects. To date, the agency has loaned $417m (KD125.3m) to the country.

Its agreement to fund the hydroelectric power plant came a day after Kuwait’s Ministry of Electricity and Water signed two contracts worth $141m (KWD47m) to renovate its Doha West and the Sabiya power plants.