GILGIT, Feb 7: The water and power department of Gilgit-Baltistan is setting up another hydro power project of 16MW in the Naltar valley where an 18MW project has already been established by a Chinese firm, officials said.

The officials said that the government was harnessing the hydro power potential of the region to produce cheapest mode of energy.

The officials said the 18MW project was catering to needs of the population of the Gilgit city, but there was need to set up another power project to cater to the growing number of power consumers.

It was learnt that contract for establishing the 16MW power project has been awarded to a firm from Punjab. The project would cost Rs1.35 billion.

Meanwhile, repair work on the 18MW power project at Nalter continued on Tuesday, which had developed fault suspending supply to Gilgit city. However, supply of electricity to parts of Gilgit city was given from thermal station only for four hours.

COMPENSATION: The National Highway Authority will pay Rs2.5 billion as compensation to people whose land was acquired for widening the Karakuram Highway.

This was disclosed by the NHA officials while talking to this correspondent on Tuesday. They said the compensation was being paid to those landowners whose property was affected by the project right from Khunjarab to Raikote Bridge.

Officials said estimates have been sent to the headquarters and as soon as funds were released payments would be made to the people.

Meanwhile, the affected people have demanded of the government to expedite the payment of compensation, saying anyfurther delay would be protested.