PESHAWAR, April 23: The provincial government has decided to empower the Small Hydel Development Organiza-tion (Shydo) to conclude agreements with financial institutions and Wapda to exploit the perennial water resources and develop hydro projects in the NWFP.

This decision was taken at the 18th meeting of the Shydo board of directors which was presided over by Chief Minister Akram Khan Durrani. Speaking at the meeting, Mr Durrani said that foreign and domestic investors were in contact with the provincial government for investment in water and power related projects.

The government has also made up its mind to go for joint ventures in this sector to tap the water resources, he added. The meeting stressed that a mechanism should be evolved so that the electricity produced in excess through these projects could be sold out to Wapda.

The chief minister said that Malakand-III project was a test case for the government, which, he hoped, would encourage investment in the hydro-related projects in the province.

He also appreciated the agreement between the provincial government and Wapda for the purchase of excess power that the Malakand-III project would produce. The provincial government would keep tab on the pace of progress on Malakand-III project, he added.

The meeting was also attended by provincial minister for irrigation Hafiz Akhtar Ali, chief secretary Ejaz Ahmad Qureshi, secretaries of irrigation, finance, works and services departments.

The meeting also reviewed options to facilitate investment in hydro-related projects, ensure security to investment, and partnership between the public and private sectors in water and power sectors.