The additional loan agreement for the run-of-river project has been signed by Pakistan Economic Affairs secretary Muhammad Saleem Sethi and KFED Hamad deputy DG Al-Omar.
The KFAED previously agreed to provide a loan of $40m for the construction of the Neelum Jhelum project.
The project is expected to cost $2.89bn, of which nearly $1.6m would be funded by foreign investors.
Foreign investors including IDB, Saudi Fund, Opec Fund, Kuwait Fund and China Exim Bank have already guaranteed around $1bn for the project.
Al-Omar told Kuwait News Agency: " Kuwait fund has undertaken a number of development projects in Pakistan and would continue its support."
Located in Muzaffarabad , the Neelum-Jhelum hydropower project is being developed under run-of-the-river hydroelectric power scheme to divert Neelum River’s to an outfall on the Jhelum River.
The first generator of the project is planned to be commissioned in December 2015 while the complete project is scheduled to be completed in 2016.
The project is expected to generate 5,150GWh of electricity annually for the county.
