Punjab Irrigation and Power Department will construct five hydropower projects with the financial assistance of Asian Development Bank (ADB) worth 65 million dollars in the public sector. The total annual power generation of these five projects would be 24.8 MW, it has been learnt.
Sources told Business Recorder that the Asian Development Bank sanctioned this amount as soft loan for the power projects, but unfortunately it could not be utilised because neither Planning Development Department hired the consultant nor prepared any feasibility report in this regard.
Taking notice of the matter, Chief Minister Punjab Mian Shahbaz Sharif asked the irrigation department to finalise the projects after preparing the feasibility reports of the projects. He also directed that if proper utilisation of the ADB's soft loan is not possible for the irrigation and power department, the loan amount be returned to the bank.
Sources claimed that the Punjab government had agreed to contribute 20 percent ie, 13 million dollars for these projects. Under the "Punjab Power Generation Policy, 2006", the Punjab government planned to develop hydel power projects, both in public and private sectors, on 'raw' and 'solicited sites' with minimum equity required by private sponsors is 20 percent. Mode of investment for hydel power projects is Build-Own-Operate-Transfer (BOOT) basis.
The sources said that there were 48 preferred sites having potential of a total of 350 MW electricity generation. Hydel power potential of barrages could help produce 246 MW electricity and non-perennial canals could produce 105 MW electricity annually.
The sources said that Rs 462 million Pakpattan project would produce 3.2 MW, Rs 692 million Okara project would produce 4.0 MW, Rs 676 million Deg Outfall project would produce 5 MW, Rs 827 million Chianwalli project would produce 5.4 MW and Rs 1,064 million Marala project would produce 7.2 MW electricity. Total annual power generation of these five projects would be 24.8MW.