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
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.