ISLAMABAD, July 2: Two local banks and multilateral lenders have agreed to provide $120 million to a private firm for developing an 84MW hydropower project at the Mangla dam downstream in Azad Kashmir.

New Bong Escape Hydropower Project, named after the Bong Canal of the Mangla dam, would be completed in three-year time, said a press release.

The Asian Development Bank and Islamic Development Bank would provide $37.2 million each while the National Bank of Pakistan and Habib Bank Limited would together extend $40 million loan. The banks and the sponsors of the project signed the documents of agreement on Monday.

Situated at about eight kilometres of Mangla dam downstream and 120km from Islamabad, the project would rely on water drawn from the reservoir without any impoundment and human resettlement.