ISLAMABAD: Prime Minister (PM) Shahid Khaqan Abbasi on Friday has officially inaugurated the first unit of Neelum-Jhelum Hydropower project in Muzaffarabad. Addressing the ceremony, the prime minister said that the project was an engineering marvel and the government completed the project overcoming immense challenges. The first unit is currently contributing 60 mega watts (MW) electricity to the system and will be generating 242 MW at full capacity after two days. Neelum-Jhelum project is considered to be an engineering wonder as it is planned underground in a mountainous area that may reap an estimated annual benefit of Rs 55 billion. The plan covers three main components of a dam, water-way system consisting of 52 kilometer (KM) long tunnels and an underground power house. The project will also be providing low-priced hydel-power worth five-billion to the National Grid annually. Pakistan Water and Power Development Authority (WAPDA) has been implementing a joint strategy for optimal consumption of water and hydro-power resources. The strategy focuses on fast completion of projects under construction and initiation of new water and hydropower projects to be completed in shortest possible time. WAPDA has been making efforts to grant contracts for Mohmand Dam and Diamer-Basha Dam within a year. The grants for both the dams will assist in making up for water storage and hydropower generation capacities are expected to increase immensely. The Neelum-Jhelum project commenced in January 2008 for diversion of Neelum waters through tunnels constructed at Nauseri about 41 km from Muzaffarabad. The outfall for Jhelum River and its powerhouse are located in Chatter Kalas Muzaffarabad. The project holds the capacity to generate 5150 Giga Watts per hour (GWh) that is 5.15 billion units annually.