The government has decided to seek financial assistance of more than Rs 24.71 billion from Japan for at least 10 water and power sector projects. The economic affairs division (EAD) would submit these projects to the Japanese government, which will finance them under its Official Development Assistance (ODA), resumed last April during the official visit of Japanese Prime Minister Junichiro Koizumi to Pakistan.
Well-placed sources told Business Recorder on Monday the planning commission has submitted 10 projects costing about Rs 68.71 billion to EAD to seek Rs 24.71 billion from Japan.
Japan has resumed ODA after seven years suspension and asked Islamabad to prioritise and forward projects in water and power sector consistent with the medium-term development framework (MTDF).
Responding to Japan's offer, the EAD has requested the planning commission to submit new projects relating to water resources, sewerage and energy.
Sources said out of these 10 projects, seven projects are in the energy sector including 220kv GIS station at Ghazi costing Rs 2.56 billion; 220kv grid station at Kassowal, Rs 2.02 billion; extension of eight grid stations for addition of 220/132kv 160 MVA transformers, Rs 2.31 billion; 500kv Sahiwal grid station, Rs 2.91 billion; sixth secondary transmission lines and grid stations, Rs 53.30 billion; provision of secured metering system at delivery points between electric supply companies, Rs 1.01 billion; and 220kv grid station at Khuzdar and 220kv Dadu-Kuzdar double circuit transmission, Rs 2.90 billion.
The two water resource projects are Akhori dam and Bazai irrigation scheme, which would cost Rs 1.6 billion. Besides, Greater Karachi Sewerage Master Plan study of Rs 107 million has also been submitted to the EAD.
Sources informed Business Recorder, besides this, the government has so far submitted 23 projects to Japan. However, out of this the Japanese government selected five projects of which two were related to road sector, two in irrigation sector and one to the power distribution.
THESE PROJECTS INCLUDE: Punjab barrage rehabilitation and modernisation project (Khanki barrage), lower Chenab canal system rehabilitation (load dispatch system upgradation), Japan-assisted rural road construction (phase-II), Sindh and Indus Highway project (N-55), Sehwan-Dadu-Larkana.
The Japanese government on August 10 extended $146 million for the two projects - lower Chenab canal system rehabilitation ($111.8 million) and load dispatch system upgradation ($34.3 million) - out of these five projects.
Sources said remaining projects, which had some social, environmental and technical problems, were also under negotiations with Japan. It is hoped Japan would approve the remaining projects in near future after removing bottlenecks, they believed.