WB not to cancel $56m tranche for GBHP: Notice withdrawn
By Our Staff Reporter
ISLAMABAD, May 6: The World Bank on Tuesday withdrew its notice to cancel $56 million next tranche for Ghazi Barotha Hydropower Project (GBHP) on resolution of its disputes on corruption related matters.
“The bank on Monday removed the warning issued in December last year in which it has said that failure to comply with the project agreements could result in the suspension of disbursement and possible cancellation of the loan,” said a bank announcement following it officially delivered a letter to the economic affairs division.
The banks country director, John Wall “noted that the bank was lifting the loan cancellation warning in view of the satisfactory progress made in areas such as the implementation of the resettlement action plan, environmental aspects of the GBHP, including development of Wapda environment management and outstanding resettlement question related to the Tarbela Dam,” the statement said.
The bank said the government had made encouraging progress in mitigating the concerns raised by the World Bank including compensation issues and hoped that the project would soon start playing an important role in Pakistan’s development.
The bank official said that in addition to actions already taken, the government has provided a dated timetable for resolving all the issues, and that adherence to this timetable would be critical for continued bank support.
Later, at a meeting with the power minister and senior officials, the visiting review mission of the World Bank offered to sponsor visits of water & power sector experts to various countries such as Bangladesh and Nepal in order to study micro- hydropower projects and rural electrification that is run through community and enterprise-based system.
The bank delegation was headed by the visiting Energy Sector Director for South Asia, Vincent Gouarne and Pakistani delegation was led by Minister for Water and Power Aftab Ahmad Khan Sherpao.
Both sides discussed various issues relating to power sector reforms, corporatization, financial improvement plan of Wapda and resettlement/environmental matters on Ghazi Barotha Hydropower Project (GHBP).
Sherpao assured the visiting delegation that reforms in the energy sector were on top of he government’s agenda. Corporatization of Wapda was proceeding right on track and Faisalabad Electric Supply Corporation shall be ready for privatization by first quarter of 2003 as eight bids have been received, the minister added. Sherpao said that all issues relating to resettlement of affecters of GBHP and Tarbela Dam have been resolved. He said that the prime minister distributed cheques among the affected people of Kala Dhaka on Monday at Mansehra.
He assured the delegation that problems of all the affected persons of GBHP would be fully resolved by June 30, 2003 and those in NAB custody have been released.
The minister said that Rs220 million was being released and disbursement among the affected persons has started. He said the power ministry was now regularly monitoring the situation on minimizing transmission and distribution losses.
He informed the visiting delegation that the government wanted public opinion to determine future tariff, and said that a meeting of all the stockholders has been convened on May 12 to discuss measures regarding tariff issues.
The minister solicited financial support of donors for rural electrification as 45 per cent of population was still to be connected to national grid. He said that rural electrification programme shall be carried out from funds in Poverty Alleviation Programme that may be included in next budget.
The Bank mission assured its cooperation in extending further assistance for capacity building of the power ministry as different expertise would be needed in post-privatized scenario. The Mission showed satisfaction over the Financial Improvement Plan of Wapda. However, they said that long-term vision is needed to bring more financial regularity in the utility.
