PESHAWAR, May 17: The Malakand-III hydro power project, a public sector mega scheme of the NWFP government, will start power generation in December this year.

The project costing more than Rs6.379 billion will produce 81 megawatt electricity besides irrigating 20,000 acres of land. It will earn Rs1.5 billion annually.

The project will be operated in conjunction with the two existing power stations of Jabban in Dargai. The Jabban hydro power project which was established in 1937 is producing 20 megawatt and Dargai, which was established in 1953 is also generating 20 megawatt electricity.

This was disclosed by the project director Malaknd-III Hydro Power Project Sardar Mohammad Tariq Khan in a press briefing at the site of the project on Wednesday.

The project is being implemented on 40 to 60 equity debt ratio. The 40 per cent of equity has already been provided by the provincial government from the NWFP Hydel Development Fund. The 60 per cent of debt (Rs3072.33m) has been arranged as loan from the joint venture of first national equity limited, Bank of Khyber and the Orix Leasing.

The BoK has already released its share of Rs400 million for the project to the provincial government.