ISLAMABAD: The Economic Co-ordination Committee (ECC) of the Cabinet, which met here on Thursday with Federal Minister for Finance Dr Abdul Hafeez Sheikh in the chair, allowed Wapda to raise Rs 20 billion for the Diamer Bhasha Dam project from the open market.
Official sources said this money would be raised by issuing Sukuk and Term Finance Certificates (TFCs) which would be repaid by Wapda from its own resources, however, the government of Pakistan would be sovereign guarantor. Sources said an amount of Rs 15 billion was earmarked for the said dam in Public Sector Development Programme (PDSP) for acquisition of land.
An Additional amount of Rs 20 billion would now be raised by Wapda, said an official, adding that the total cost of 4500 megawatts Diamer Bhasha Dam is estimated at $13 billion, and so far international financial institutions have not made any commitment for the mega project.
Sources said the civil works on the project would start after the approval of financing by the donors. On a summary moved by the Ministry of Water and Power, the ECC allowed Wapda to raise funds, says a statement issued after the meeting. The Diamer Bhasha Dam would add 4500 MW hydropower to the national grid with live storage capacity of 6.4 million acres feet of water for irrigation. The Minister for Water and Power has informed the committee that Wapda had raised Rs 8 billion in 2006 and Rs 8 billion in 2007 and is currently servicing them.
The committee was also given presentation on Pakistan Poverty Alleviation Fund (PPAF) along with its institutional framework, engagements with the Government of Pakistan, operational framework, its Outreach and Output and Resource Deployment and its Outcome and Impact.
The chairman of the committee said that since the Government of Pakistan is the principal contributor to the fund, therefore, the ECC members also be made aware of the reach and range of the activities of the Fund. He asked the Fund to give a comprehensive analysis of the present and past picture of the poverty alleviation in the country, and in this regard set up a committee headed by Deputy Chairman Planning Commission, Dr Nadeem-ul-Haque with members Hina Rabbani Khar, Minister of State for Finance, Shahnaz Wazir Ali, Special Assistant to the Prime Minister on Social Sector Development so that the projects of the Fund be made more tangible in terms of poverty alleviation.
The committee was also given presentation on the National Rural Support Programme on Social Mobilisation leading to Community Development in rural areas. The Pakistan Poverty Alleviation Fund and National Rural Support Programme are inter-related. The sub-committee constituted by the Chairman, headed by DCPC shall look into both the programmes and submit its report in the coming ECC meeting.
The committee earlier had a glimpse of the economic situation in terms of the prices situation in the country, with current economic indicators, review of the stock position of edibles, POL products and implementation status of the decisions taken in the last ECC meeting.
Among others who attended the ECC meeting were Federal Ministers for Food and Agriculture, Water and Power, Petroleum and Natural Resources, Minister of State for Finance, Textiles and Railways Deputy Chairman Planning Commission and concerned high officials of the Finance, EAD, Commerce, FBR, Statistics and newly appointed chairman of the SECP.