The World Bank, Asian Development Bank and the Islamic Development Bank were expected to provide the required funding to complete the project by June 2011. Work on the project commenced in July 2003 but was suspended due to lack of funds.
The project includes the construction of a 140m long and 47m high concrete gravity dam to divert 280m3 from the Neelum river through trans mountainous headrace tunnels to generate 696MW hydroelectric power. The feasibility study, engineering design and technical tender documents have been completed.