April 18, 2008	Friday	Rabi-us-Sani 11, 1429

ISLAMABAD, April 17: The Asian Development Bank offered investment to the extent of $800 million on Thursday in water and power sectors in the coming years.

The ADB assured technical and financial support and assistance for major water and power sector projects, including up- gradation of existing distribution systems and transmission lines to improve system efficiency and supply of electricity to the consumers besides major rehabilitation and infrastructure projects in water sector.

The assurance was given by the head of a four-member ADB delegation, Sean O’ Sullivan, during a meeting with Federal Minister for Water and Power Raja Pervez Ashraf here.

Investment opportunities, as well as progress of on-going projects in water and power sectors, were discussed in the meeting.

The minister informed the delegation that at present Pakistan was facing a shortfall of more than 3,000MW and encouraging private investors to come forward to make investment in power sector.

He stated that the confidence of domestic and foreign investors would get a boost as economy would be stabilised by adopting rationale policies to remove hindrances and bottlenecks.

The minister also sought bank’s assistance in pursuing alternative energy projects, like wind, solar energy, coal-based generation and hydropower.

He said to overcome power shortfall, the government wanted to increase its generation capacity and intended to install large run- off-river hydropower projects, such as Kohala and Bunji, for which he sought technical and financial assistance of the bank.

The Asian Bank has also extended help in the water sector mega projects, including power transmission enhancement project, power distribution enhancement project, energy efficiency improvement and renewable energy development projects.

He said that to meet financial requirements of these projects, a multi-tranche financing facility to the extent of $800 million, extendable to $1,200 million, had been agreed.

He added that the ADB was also assisting Pakistan in capacity- building of power sector institutions for which technical assistance was being extended.

The minister also informed the delegation that Pakistan was embarking on construction of multipurpose dams which would meet power needs on a long term basis.

This would involve an overall investment of over $18 billion in the next five to 10 years.

He expressed the hope that the ADB would extend liberal financial assistance, particularly for Diamir Bhasha dam work on which is expected to be started in early 2009.

Minister informed the delegation that to meet urgent needs of power, some thermal projects were being started in public sector but stressed the need for involvement of private sector as a long-term objective and continuity of reforms agenda in the power sector.