China Eximbank provides a USD 144.18 million preferential buyer's credit loan for Naulong Storage Dam Project (Linked to Record ID#35904)

China Eximbank provides a USD 144.18 million preferential buyer's credit loan for Naulong Storage Dam Project On July 25, 2009, China Eximbank signed a preferential buyer’s credit (PBC) loan agreement with the Government of Pakistan for the Naulong Storage Dam Project. The borrowing terms are unknown.

However, this project encountered financial difficulties during project implementation and China Eximbank eventually withdrew its financial support for the project. Asian Development Bank (ADB) replaced China Eximbank as financier. It is unclear how much China Eximbank disbursed before ADB took over.

Descon Engineering Limited — the biggest contractor in Pakistan — was selected as the contractor responsible for project implementation.

The proposed Naulong Dam was to be located on Mula River at Sunth, about 30 kms from Gandava Town in the district of Jhal Magsi of Balochistan Province. With the construction of the proposed dam, it was envisaged that the flood waters of the Mula river would be stored.

It was also envisaged that storage of these waters in a reservoir would be annually available for developing 47,000 acres irrigated agriculture.

It was also envisaged that the project would produce 4.4 MW of power generation with annual energy of 26.6 GWh, and that the damming the flow of Mula river would increase water supply for drinking and other domestic uses and seepage from the dam would recharge the ground water reservoir and increase ground water resources.