Islamabad is reportedly disappointed over the 125 million-dollar US package for the power sector, announced by Secretary of State Hillary Clinton as the Ministry of Water and Power was expecting at least 300 million-dollar financial assistance.
"The US energy sector assessment mission, led by US Co-ordinator for International Energy Affairs David L.Goldwin, had roughly worked out 300-350 million dollars as the support required to meet Pakistan's short-term energy sector needs and Pakistan is naturally disappointed with the much lower amount announced by the Secretary of State," said a senior official of Water and Power Ministry, who was present in the two-day official deliberations.
Sources said Water and Power Minister Raja Parvaiz Ashraf, who headed Pakistan's team, had requested the US energy mission to dispatch its experts to Pakistan to prepare a succinct roadmap for the troubled power sector.
According to an official statement, issued by the American Embassy, following Hillary Clinton meeting with Foreign Minister Shah Mahmood Qureshi at the Foreign Ministry, the US Secretary of State announced a contribution of 125 million dollars for the first phase of a Signature Energy Programme (SEP) in Pakistan, aimed at increasing electricity output and conserving wasted energy and resources.
The funding will be aimed at repairing generation facilities, improving the overall effectiveness of local utility providers, replacing inefficient tubewell pumps and promoting energy efficiency. The six projects, announced by Secretary Clinton, on Thursday are targeted to begin reducing the frequency of electricity blackouts that interfere with commerce and have plagued the Pakistani economy.
The following are six projects:
-- Replacing or repairing 11,000 agricultural irrigation tubewell pumps, a major component of electricity transmission, used by a majority of farmers across Pakistan. Rehabilitating, refurbishing, and upgrading targeted components of the Jamshoro, Muzaffargarh and Guddu thermal power stations to recapture significant amounts of their lost capacity.
-- Improvements at Jamshoro Thermal Power Station, which sits on the banks of the Indus River near the city of Hyperabad in Sindh province, will result in an additional 530 GWh/year of electricity for the national grid.
-- Improvements at the Muzaffargarh Thermal Power Station (TPS), located on the banks of the Indus and Chenab Rivers near Multan, will result in 165 MW and a production of approximately 1,185 GHh/year of electricity for the national grid, saving 17 million dollars in fuel per year.
-- A targeted rehabilitation project to improve the ageing and deteriorating gas turbines at the Guddu Thermal Power Station will restore 33 to 55 MW of the power station's lost capacity and produce an additional 237 to 372 GWh/year for the national grid. The more efficient units will save approximately 2.3 million dollars per year.
-- Installing higher performance insulation windings and supplying spare parts at the Tarbela Dam Hydroelectric Power Station, located on the Indus River in the NWFP, will increase the station's capacity to 80 MW - 192 million kilowatt hours - of power. The funding will also provide additional training of staff.
-- This decision of Washington has surprised top officials of the government, who were expecting financial assistance to replace obsolete machinery for Mangla dam.
The Chairman of Water and Power Development Authority (Wapda) confirmed to this correspondent that 25 million dollars were earmarked for replacing obsolete equipment of unit number 4 of Tarbela Dam, which would generate 70 MW.
-- The US will work closely with four of the nine public electricity distribution companies over the next three years, aiming to lower levels of electricity loss so they are comparable to well-run distribution companies in developed countries. Every one- percent of system-wide loss reduction represents 97 million dollars in savings to Pakistani consumers and additional power for economic development.
Electric power distribution companies in Pakistan lose almost a third of the electricity they purchase, and some companies lose 50 percent or more. These losses are due to weak management, non-payment by government and consumers for electricity consumed, and high technical losses from worn-out equipment, says the announcement.
According to official sources, the US energy mission has invited Pakistan Alternative Energy Development Board (AEDB) experts to visit alternative power generation system of the US to learn and transplant their energy models to Pakistan.