ISLAMABAD  - Neelum-Jehlum Hydro Electric Project Chief Executive Officer (CEO) Zubair has warned Pakistan may lose 13 per cent water if India succeeds in building the Kishanganga dam.

Briefing the National Assembly Standing Committee on Economic Affairs Division that met with Pirzada Imran Ahmed Shah in the chair on Friday, he said India was constructing 14 dams, which would affect Pakistan seriously. “India can also control the Mangla dam water through these moves,” he said.

The CEO urged the committee to play its part in getting released their outstanding Rs83 billion from the Pakistan Electric Power Company (Pepco), saying that if Rs2 billion of the outstanding arrears was released monthly, the project could be run successfully. The body issued directives to the Finance Ministry over the issue.

He informed the committee that turbine boring machines (TBMs) had been installed on 170-km out of 180-km area, which would function from October 16. “The Neelum-Jehlum Hydro Electric Project has not been able to open letter of credit (LC) worth $113m for Islamic Development Bank-financed equipment and the issue has also been taken up with the Neelum-Jehlum Hydro Company,” he said, adding that $100m loan agreement with Abu Dhabi Fund is pending because the fund has linked this to the issue of payments to Eitsalat in PTCL privatisation process.

He informed the committee that $448 million loan agreement with Exim Bank China was pending as the China State Council had yet to approve it. “The revised total cost of the project without interest during construction is $2,583.43million and the total financing from local source and total requirement from local source is $1291.71million each,” the CEC added. He informed the committee that the surplus deficit of Rs90 billion would be met through 50 per cent government’s share and the rest would be met with foreign loans share.

He added that feasibility in detailed engineering design was completed in 1997 as per seismic parameters established before the 2005 earthquake and after earthquake revised PC-1 of the project escalated to Rs274.882b recommended by the Central Development Working Party (CDWP) for Executive Committee for National Economic Council (Ecnec) approval on June 18, 2012 whereas the original PC-1 was approved in 2002 for an amount of Rs84.502billion.