ISLAMABAD: Pakistan and Asian Development Bank (ADB) here Wednesday signed a loan agreement under which the bank would provide US$ 900 million for Jamshoro coal-fired power generation plant.
The loan agreement was signed by the Secretary, Economic Affairs Division Nargis Sethi and Country Director, Asian Development Bank, Werner E. Liepach while the Project Agreement was signed between Project Executing Agency through Mohammad Anwar Brohi, Chief Executive Officer, Jamshoro Power Company Ltd. and Aftab Ahmed Nadeem, Joint Secretary/Chief Executive Officer GENCO Holding Co. and Country Director, ADB.
The signing ceremony was witnessed by Federal Minister for Finance Senator Mohamamd Ishaq Dar and ADB Vice President, Wencai Zhang and other officials of finance ministry and ADB.
Through Jamshoro Power Generation Project two new super-critical coal-fired power generation units with the capacity of 2×600 MW will be constructed in Sindh province.
The objectives of the proposed project is to increase affordable, reliable power generation and reduce power shortages in Pakistan, said Federal Minister for Finance, Senator Mohammad Ishaq Dar while talking to journalists on the occasion.
Dar said the government was taking concrete measures to generate cheap electricity to overcome power crisis, adding various furnace oil power projects are being converted into coal based plants including establishment of Gaddani coal power park.
He said that currently Pakistan was producing maximum energy on furnace oil which is expensive adding that the government would go for energy mix to reduce production costs.
He said that in addition to ADB’s current policy that incudes promotion of sustainable growth rate and poverty reduction, the bank is now focussing on helping Pakistan to overcome its energy problems.
He said that ADB would be providing US $3 to $ 3.2 billion in next couple of years that would help socioeconomic development of the country.
He said that the government was committed to overcome energy crisis and produce electricity not only to over come current shortage but to cater to enhanced demands in the future.
He said that electricity of about 8000 megawatt would be added to the system by the fourth year of this government and it would be enhanced from current 14,000 to 40,000 in next ten years.
To a question, the federal minister said that the government has started land acquisition and technical feasibility of the Diamar-Bhasha project adding that international donors like ADB and World Bank could become partners at later stage.
Speaking on the occasion, ADB Vice President said that the project would boost low-cost power supply and improve country’s energy mix.
“Diversifying to coal will help the country to cut down its electricity generation cost and reduce its oil import,” the ADB Vice President added.
It is pertinent to mention here that the Jamwshoro power project was approved by the ADB’s Board of Directors in December 2013 and is expected to be completed by December 2018.
In addition to the ADB loan, of US $220 million will be provided by Islamic Development Bank whereas US $380 million will be government’s contribution to meet the overall estimated project cost of $1.5 billion.
The project will be executed by GENCO Holding Company Limited and implemented by Jamshoro Power Company Limited in Sindh.