ISLAMABAD: Pakistan and German governments signed an agreement here on Monday, under which the German Ministry for Economic Cooperation and Development will provide 20 million euros for construction of 35MW Harpo hydropower project in north-west of Skardu.

Germany has already financed feasibility study of the Harpo hydropower project which will be the largest power generation project in Gilgit-Baltistan.

The assistance will come through KfW Development Bank. The French development agency, AFD will provide 50m euros for the project.

On behalf of Economic Affairs Division, the agreement was signed by Ali Raza Bhutta, Joint Secretary, while Najib Tariq, GM Finance of Wapda and KfW Director Dr Anna-Christine Janke inked the agreement on behalf of their respective sides.

The Harpo hydropower project, to be constructed on Harpo nullah, a left tributary of the River Indus in Rondu area of Skardu, will include first-ever 132kv transmission line of about 70km, and three grid stations.

A bridge will be constructed across River Indus which will ensure better access to Skardu-Gilgit road.