ISLAMABAD, May 16: The Islamic Development Bank (IDB) has agreed to co-finance big hydropower development projects in Pakistan and extend a soft-term credit facility to Wapda and the KESC to import furnace oil for a reduction in power production cost.

This was the outcome of a meeting between the visiting IDB mission led by Nabil A. Nassief and Pakistani team led by Water and Power Minister Aftab Ahmad Khan Sherpao.

An official announcement said after the meeting that Mr Sherpao briefed the visiting delegation about the water & power sector and its ongoing and upcoming projects.

“The IDB mission agreed to co-finance big projects, including Bhasha-Diamer dam, Neelum-Jhelum and Taunsa hydropower projects,” the announcement said.

The minister also solicited IDB support for a detailed feasibility study of Bhasha-Diamer dam.

The mission informed the Pakistani delegation about the newly introduced financing scheme — SUKKUK — under which the IDB is offering interest-free soft loans with nominal charges to the Muslim countries.

Under this facility, the IDB would finance the rural electrification programme of Pakistan.