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ADB to invest $3b in power sector

Feb 15, 2007 Asia Pulse Data Source

The Asian Development Bank will invest three billion US dollars in Pakistan for improvement of power transmission and distribution system in the next three years. ADB Country Director in Pakistan Dr Peter Fedon disclosed this while talking to the Water and Power Minister Liaquat Ali Jatoi on Thursday. The bank has assured of their technical and financial support for major water and power sector projects. The ADB assistance will be used in upgradation of power distribution systems and transmission lines to increase system efficiency and supply of electricity to consumers besides major rehabilitation and infrastructure projects in the water sector.

The minister informed that Pakistan was making rapid economic growth. He added that the confidence of domestic and foreign investors was gaining new heights and the economy was now more stable, backed by transparent policies and good governance. He also informed the delegation that Pakistan was also focusing on alternative energy projects such as wind power solar energy, coal-based generation and hydel power.

Jatoi said the power sector was currently undergoing reforms and restructuring and necessary groundwork had been done in this regard, which were fully supported by the ADB.

He said to achieve the economic growth targets, the power sector needed to increase its generation capacity, efficiency and coverage. He stressed the need for coordinated meetings of the donors to expedite the progress of projects. He urged active role of the ADB in financing Diamer-Basha dam and other mega water sector projects including next phase of flood protection programme.

Dr Fedon praised the efforts of the government to maintain stable economic growth and offered both technical and financial assistance in this regard. He said the ADB would focus on financial assistance of $ 500 million for renewable energy development, $ 1,200 million for power transmission enhancement, $ 250 million for power distribution enhancement and $ 800 million for irrigated agriculture and water resources projects besides a number of technical assistance programmes for capacity building and relevant studies.

He also informed about the new instruments of the bank for private sector partnership in infrastructure development in Pakistan.

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