A consortium of International Financial Institutions (IFIs) - World Bank, Asian Development Bank and Islamic Development Bank has agreed to extend $1.2 billion loan for 9 energy projects in a bid to help Pakistan mitigate energy crisis, Business Recorder has learnt. The total cost of these projects is $4.8 billion.
The projects include 740 MW Munda Multipurpose dam, Kuram Tangi dam, 100 MW Sindh Province Wind Farm, Natural Gas Production Enhancement and Efficiency Project (NGEEP), Warsak Dam Hydro Electric Power Project, Mangla Hydroelectric Power Station Rehabilitation, Suki Kinari Hydropower Project, Lower Spat Gah Hydropower Project and Neelum Jhelum to Rawat/Gujanuna Transmission.
The IFIs consortium will extend $300 million to Pakistan for 840 MW Suki Kinari Hydropower Project, which costs $1.4 billion. Pakistan is expecting $400 million from World Bank to finance Munda Multipurpose dam. The dam is expected to generate 740 MW electricity and provide a live storage capacity of 0.67 MAF water. The project would help reduce flood risks in Nowshehra and irrigate 29,000 acres besides benefiting 30,000 acres of already irrigated areas.
A consortium of IDB, WB and ADB has indicated to provide $120 million commercial loan for Kuram Tangi dam with 83 MW power generation capacity. The total estimated cost of the project is $300 million. Pakistan hopes to receive loan worth $50 million for 100 MW Sindh Province Wind Farm from a consortium of IDB, WB and ADB.
The total estimated cost of the project is $240 million. The 100 MW wind farm located in Sindh would provide 300 GWh energy to the national grid yearly to meet power shortfall. Pakistan has great potential of power generation through wind and the project can be a pilot project.
The government of Pakistan and the World Bank are working on a project to improve natural gas production in Pakistan. "The World Bank has given nod to provide $50 million for Natural Gas Production Enhancement and Efficiency Project (NGEEP) that would result in reducing gas consumption," sources said. The cost of the project is estimated at $400 million.
The IFIs consortium will provide $60 million for Warsak Dam Hydro Electric Project. The project costing $300 million will help in restoring 140 MW power generation capacity. The IDB, WB and ADB have expressed willingness to provide $120 million for Mangla Hydroelectric Power Station Rehabilitation project which aims at adding 30 MW additional power supply. The total cost of the project is $500 million.
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