ISLAMABAD, Jan 23: The Asian Development Bank (ADB) will facilitate the export of 1,000 megawatts of electricity from Kyrgyz Republic and Tajikistan to Pakistan and Afghanistan to help overcome to some extent their growing energy shortages.

The Bank is providing a US$3 million technical assistance grant for a study that will look into the feasibility and viability of the proposed project, including assessment of power availability and demand in the countries, possible transmission routes, economic and financial costs, and environmental and social safeguard assessments.

According to the ADB, the feasibility study will look into the proposed power trading project that would, in its initial stages, earn revenues for the Kyrgyz Republic and Tajikistan by allowing them to initially export 1,000MW of electricity to Afghanistan and Pakistan.

The Multi-Country Working Group of the ADP will deal with the financial and technical aspects of the proposed project.

The European Bank for Reconstruction and Development, Islamic Development Bank and World Bank along with bilateral and private sector stakeholders are participating and assisting the Multi-Country Working Group in the proposed project.

The Multi-Country Working Group had taken important steps towards regional cooperation in power trade, says F.C. Kawawaki, an Asian Development Bank Senior Investment Specialist.

Although there are some projects under development in Afghanistan in which several Central Asian states are cooperating with Afghanistan, there is considerable scope for expansion of regional cooperation especially in the power sector. This project marks the beginning of the process to bring the demand and supply sides together.

The countries have also requested the World Bank to provide technical assistance, focusing on the commercial assessment of the study which, together with Asian Development Bank’s assistance, will be utilized by the four countries to determine the way forward.

The Asian Development Bank has offered Pakistan $670 million in new assistance to overcome the worsening energy crisis by developing its renewable energy resources.

The amount would meet about 80 per cent of the five-year renewable energy development programme in Punjab.

Five hydropower projects have been identified under the programme.

The main objective of the ADB assistance is to provide adequate facilities for generation, transmission and distribution of electricity keeping in view the future requirements for industrial, agricultural and economic development of the country.