ISLAMABAD, Nov 11: Pakistan and the Opec Fund for International Development (OFID) have signed two agreements of $15 million each, for the Golan Gol Hydropower Project.

The agreements were signed in Vienna by Shahbaz, Ambassador of Pakistan to Austria and Suleiman J Al-Herbish, Director General of the OFID on behalf of the government and the Opec Fund respectively, said a press release received here on Tuesday.

The project, involving $30 million co-financing from the OFID, is located on the Golan Gol River, a left bank tributary of the Mastuj River.

The powerhouse of the project is located in the North West Frontier Province (NWFP) along Chitral-Bunni Road at a distance of about 25 km from Chitral.

The project has an installed capacity of 106MW (annual energy production: 436 million KWH). Work on the project is already under way and the Opec Fund’s financial assistance will be utilised in procurement, installation and testing of transmission line and grid stations extension.

Speaking on the occasion, Suleiman J. Al- Herbish recalled that OFID Pakistan cooperation spanned over more than 30 years now.

He expressed the Fund’s continuing commitment to this cooperation in the coming years.

Referring to the global financial turmoil, he stressed that OFID’s decision to sign two loan agreements with Pakistan during these times showed the trust which the Fund had in the resilience of economy of the country.

Ambassador Shahbaz thanked the Director General for OFID’s financial support for a number of projects in Pakistan.

Regarding the Golan Gol Hydropower Project, he underlined its particular importance for Pakistan at a time when the country was faced with imbalance between energy demand and its production capability.—APP