LAHORE, Dec 21: The Sui Northern Gas Pipeline Limited will finance entire distribution network for Mirpur, Azad Kashmir from its own resources, and it has returned loans taken for the purpose.

A company spokesman said on Wednesday the project had 39km of spur and 111km of distribution lines. The project was conceived in 2000-01 at a total cost of Rs323.76 million.

The AJK government had contributed an amount of Rs162 million and the Pakistan government had advanced a loan of Rs155 million at an interest rate of 10 per cent. Later, the interest rate in the market dropped and the loan became commercially non-viable. Thus, it was returned to the government and the company decided to undertake the project from its own resources.

So far, the 39km of spur and 67km of distribution lines have been laid. Work on the remaining 44km of distribution lines starting next month would cost the company Rs29 million.