Share this story!            

WB, ADB, IDB to fund power import from CARs

* Deal on electricity import to be signed today
* Imported power tariff to be 6-8 cents/kWh against IPPs’ 12 cent/kWh

By Zafar Bhutta

ISLAMABAD: A consortium of three financial institutions would provide Pakistan $1 billion to import electricity from Central Asian Republics (CARs) and a power import agreement in this regard is being signed here today (Monday), sources said on Sunday.

A senior official in Water and Power Ministry told Daily Times that Islamic Development Bank (IDB), Asian Development Bank (ADB) and World Bank (WB) are providing financial assistance to Pakistan to import 1,000 megawatts (MW) from Tajikistan and Kyrgyzstan.

The sources said that Pakistan and Afghanistan will share the stipulated amount to lay transmission lines for electricity import from the CARs. Pakistan is likely to get $600 million while the remaining amount could go to Afghanistan.

The source said that an agreement for electricity import is being signed today at the conclusion of two day of meetings in Islamabad by Inter-Governmental Council, comprising Pakistan Afghanistan, Tajikistan and Kyrgyzstan.

Tariff: A senior official in the ministry said the tariff of imported electricity would stand at 6 cents to 8 cents per kWh as compared to the Independent Power Producers’ (IPPs) tariff at 12 cents to 14 cents/kWh.

Federal Minster for Water and Power Raja Pervez Ashraf inaugurated the IGC meetings on Sunday. The objective of the meetings is to finalise the financial, technical and legal modalities of the power import project.

The minister told reporters at the end of day’s talks that the IGC would deal with project implementation, contract administration and system operations. He said that pre-feasibility of the power import project had been completed and the second phase of the feasibility would provide broad design specifications for the transmission line and sustainability of the project.

Ashraf ruled out security concern about Afghanistan. Afghanistan would also benefit from the project and Afghan government will take its responsibility seriously, he added. The minister said that Tajikistan had surplus electricity and its import from the former Soviet state was an option to enhance Pakistan’s national power grid.

He said 16,000MW electricity from various resources would be added to the national grid by 2015. The entire scheme of power grid enhancement needed $30 billion, the minister said, adding that the government would arrange for $20 billion from private sector while $10 billion would be raised from public sector.

Presently, the country faced 3,000MW to 4,000MW electricity shortfall per day, Ashraf said. The situation will improve in September due to better water availability in the dams, he said.

The government was also working to induct power through thermal power generation plants, the minister added, saying the move will help eliminate load shedding in the country by the end of the next year.

Ashraf rejected media reports that the WB had refused to back the Diamer-Basha Dam project. During a roundtable energy conference in Washington, the bank took interest in Pakistan’s hydropower projects, he said, adding that the Basha Dam project will start by end next year.

Ashraf also emphasised that the government would continue working on Thar coal project. Pakistan would consider all investors including India and China in the international competitive bidding for the project, he said.

Home | National

Share this story!