ISLAMABAD, Oct 19: A panel of experts of the federal government has approved the feasibility study of the $1 billion Munda dam on river Swat.

Negotiations are now expected for power tariff and implementation of the project.

President Pervez Musharraf will inaugurate the project in December and he has asked the officials concerned to fix a date, Chief Executive Officer of the US-based Amzo Corporation’s overseas operations Shahid Iqbal told Dawn.

A member of the panel said the feasibility study was approved at a meeting presided over by Water and Power Secretary Ashfaq Mahmood on Thursday. He said the estimated cost of the project would be around $1.028 billion and it would be completed by 2013.

Mr Iqbal said the study envisaged that the project would generate 660 megawatts with a 200m-high dam that would have about 1.2 billion cubic metres storage capacity.

Amzo Corporation — a group of US-based real estate developers of Pakistani origin — is the lead sponsor of the project which is co-sponsored by Hydro Energy Investment of the United Kingdom.

Vatech Hydro of Austria, which has been engaged as electrical and mechanical engineering contractor, will extend $800 million loan to the project.