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$900m ADB financing for coal-based power plant

The Asian Development Bank will provide $900 million for setting up a new power plant in Jamshoro. It will be run on imported coal to produce 600MW electricity.

The bank would also provide financial assistance for conversion of the existing 800MW Jamshoro power plant into a coal-based plant, the ADB’s Director General for Central West Asia Department, Klaus Gerhaeusser, said during a meeting with Water and Power Minister Chaudhry Ahmed Mukhtar here on Thursday.

He advised the government to start the project early so that it could be completed on time. “The ADB is aware of the importance of Diamer-Bhasha dam project for Pakistan and its construction will play a major role in easing the energy crisis in the country,” he said.

Mr Gerhaeusser said the case for financing the dam was under process and more talks would be held with the Pakistani authorities for the purpose. The ADB was sending a technical team to Pakistan next week, he added.

Chaudhry Mukhtar praised the ADB for providing the financial assistance for power plants and said Diamer-Bhasha dam was an important project to generate cheap electricity and lifeline of the country’s economy.

He stressed the need for early completion of the process of providing financing for the dam and said the ADB should play its role as lead financier to complete the project without any delay.

The dam is estimated to generate 4500MW cheap, clean and green energy with live storage of 6.4MAF.

The minister said the government attached high priority to the construction of mega water and power projects to meet its future requirements and intended to produce cheap power through indigenous resources like water, coal and wind. He said the ADB had been major financier of water and power sector projects of generation, transmission and distribution. “It is resolve of the government to end the energy crisis and to provide uninterrupted supply to the people of Pakistan for progress and prosperity,” he added.

Chaudhry Mukhtar briefed the ADB official on the current power situation and steps being taken to make the sector more efficient. He said recoveries were being made, line losses reduced, reforms implemented, energy conservation measures implemented and electricity theft was being dealt with iron hands.

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