By Abdul Ghani

Pakistan plans talks with Germany's KfW Development Bank to extend financing arrangements for the Harpo hydropower project in Gilgit-Baltistan beyond December 2026 to complete the remaining project activities, according to an official document available with Wealth Pakistan.

Under the proposed course of action, the project may take up the matter with KfW to extend the loan until December 2032.

The Water and Power Development Authority (WAPDA) is executing the project in Gilgit-Baltistan.

The German financing commitment stands at $23.20 million, with the financing agreement signed on December 24, 2013.

According to the document, the project has achieved several important preparatory milestones, including detailed engineering design in June 2022. Consultancy services were retained in April 2019, while the prequalification process for contractors across the three project lots is now complete, with prequalified firms notified on November 14, 2023.

The prime minister performed the project’s groundbreaking on November 6, 2024, at the Chief Minister's Secretariat in Gilgit.

Another major achievement has been the completion of land acquisition involving 1,068 kanals required for the project. The acquired land has been transferred in the name of the Ministry of Water Resources.

The document further reveals that Rs1.620 billion has been transferred to the accounts of the Skardu deputy commissioner for land acquisition, marking an important step towards addressing land-related requirements for the hydropower scheme.

To strengthen monitoring and expedite implementation, the prime minister has constituted a steering committee to review progress on three hydropower projects in Gilgit-Baltistan.

The document also notes that KfW issued a no-objection letter concerning the tender documents, indicating progress in the procurement timeline.
However, financial disbursement has remained at four per cent.

The project completion date recorded in the document was May 31, 2026.

Credit: INP-WealthPk