US grant for coal power project

Published September 18, 2007

Islamabad, Sept 17: The US Trade and Development Agency (USTDA) has awarded $810,000 grant to Habibullah Energy Limited (HEL) to address critical power shortage and promote energy security in Pakistan under the US-Pakistan Strategic Dialogue.

The grant will partially fund the early investment analysis on a proposed 150 megawatt power plant, as well as develop a detailed plan to ensure the reliable supply of coal for the plant from the Lakhra coalfields in Pakistan.

The grant document was signed in Arlington, Virginia, on September 12 by USTDA acting director Leocadia I. Zak and managing director of HEL Saeed Khan Peracha. Economic Minister of the Embassy of Pakistan Abdul Wajid Rana; Foreign Affairs Officer of the US Department of Energy, Tom Cutler; and Executive Director of the US-Pakistan Business Council, Esperanza Gomez Jelalian were also present on the occasion.

Bilateral cooperation in the energy sector was identified as a priority area under the US-Pakistan Strategic Dialogue with coal and renewable energy development specifically recognized as key areas for cooperative efforts. The proposed 150MW integrated coal mining and power project is a major private sector initiative that will help alleviate Pakistan’s present and growing power generation shortfall, and will be a major advance in the development of Pakistan’s untapped coal resources.

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