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ADB to provide $900m for coal power plant

The Asian Development Bank (ADB) will provide $900 million to the government for a new coal-fired power plant at Jamshoro to produce 600 megawatts of electricity. The bank will also finance the conversion of existing 800mw Jamshoro power plant, which is run on imported coal.

Klaus Gerhaeusser, director general of Central West Asia Department of ADB, said this during a meeting with the federal minister for water and power Ch Ahmed Mukhtar on Thursday.

Gerhaeusser asked him to ensure early start of the project so that it may be completed on time.

He said that the bank is aware of the importance of Diamer Basha dam (DBD) project for Pakistan and its construction would play a major role to ease the energy problem in Pakistan.

The case for financing the DBD project is under process and more talks will be held with Pakistani authorities on the financing of mega projects when technical team of the bank will arrive next week, he told the meeting.

The minister thanked him for extending financial assistance for coal and other power plants. He said that DBD is very important project to generate cheaper electricity and life line of the country’s economy.

He asked the ADB to perform its role as lead financer to complete this mega project without any delay.

The minister said that the government attaches high priority for construction of mega water and power projects to meet the future requirements and intends to generate inexpensive power through indigenous resources like water, coal and wind.

The DBD will generate 4500mw cheaper, clean and green energy having live storage of 6.4 million acres feet.

He added that ADB has been major financier of water and power sector projects of generation, transmission and distribution.

It is a resolve of the government to end the energy crisis and provide uninterrupted supply to the people of Pakistan for progress and prosperity, said the minister.

He stressed the need for early completion of the process for provision of funding for the DBD project. He briefed the meeting on the current power situation and the steps being taken to make the sector more efficient.

He also stated that recoveries are improving; line losses being reduced; reforms being implemented; energy conservation measures being implemented; and electricity theft being dealt with iron hands. He said people got relief in load shedding due to the steps taken by the government to overcome the crisis.

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