WASHINGTON, Oct 23: The World Bank has agreed to consider providing financial and technical support for Pakistan’s plan for dealing with the current energy crisis which threatens to freeze the country’s economic progress.

Pakistan held a series of meetings with officials from the World Bank and International Finance Corporation in Washington this week, leading to a pledge from the world body to consider providing technical and financial support for various energy projects in the country.

“There’s a strong convergence of views on priorities,” Pakistan Embassy’s Economic Minister Abdul Wajid Rana told Dawn. “The delegation secured the Bank’s agreement to consider support for key operations to improve the efficiency and security of Pakistan’s energy supply system.”

The two sides held detailed talks on the Bank’s potential engagement in the energy sector in Pakistan.

These include: Investment support to further enhance technical and operational efficiency in the distribution companies and enable them for privatisation through a strategic sale; and introduce conservation measures; advisory and investment support to enhance the power generation capacity, efficiency and reliability of gas-based Guddu power station, raising its capacity from 1,100MW to 1,600MW through a suitable public private partnership; financing for technical assistance to complete preparatory studies and attract reputable private investors to develop Pakistan’s coal resources and associated power generation facilities at Thar, one of the largest reserves in the world.

This will reduce dependence on imported fuel oil; investment support to import electricity from Central Asia under the Central Asia South Asia Regional Electricity Market agenda;

Investment support for medium-sized hydropower and multiple-use water resource management projects which can be developed quickly, leveraging private financing to the extent possible.

Specific projects to be considered include (i) Fourth Extension of Tarbela Power Plant (adding 960MW); (ii) an expert study for desilting of Tarbela dam; (iii) Suki Kinari (840 MW); (iv) Munda multi-purpose (740,000 acres of irrigation water and 700 MW), and (v) Kurram Tangi (irrigating 150,000 acres of arid land and 84 MW of power generation).

In addition, the Bank is supporting Pakistan’s overall hydro development strategy with technical assistance, including for augmenting water storage capacity on the Indus.

Looking ahead, should the projects developed under this assistance prove technically and economically sound, the Bank would consider favourably a request by Pakistan to help finance priority projects that are in compliance with Bank’s policies and safeguards.

The World Bank has already provided financing for improving efficiency and service quality of electricity transmission and distribution under the Electricity Distribution and Transmission Improvement Project approved in June 2008.

The project includes support for energy efficient lighting to better manage electricity demand.

“The government is accelerating the implementation of this project,” said Mr Rana.

The World Bank also has agreed to provide support for developing a Carbon Credits Strategy for Pakistan with the help of international experts.

The Pakistani delegation informed the Bank of its strategy and measures already taken to restore macro-economic stability, with particular reference to the financial situation of the power sector.

The delegation shared with the Bank other areas it is seeking to improve, such as the fuel policy for the power sector to reduce vulnerability to oil prices and import dependence.

The delegation also briefed the Bank and IFC officials on the government’s social protection programme for the needy sections of the population.

The delegation also discussed with the Bank various measures for rationalising and streamlining the institutional set up in the energy sector to enable quicker decision-making and introducing new mechanisms such as power trading and merchant plants.

The two sides also discussed leveraging greater private investment and participation in energy projects, including through public private partnerships, especially in electricity generation and distribution.

The delegation, led by Deputy Chairman of Planning Commission Salman Faruqui, included Ismail Qureshi of Ministry of Water and Power, Wapda Chairman Shakil Durrani, Asad Ali Shah and Aslam Sanjrani of Thar Coal and Energy Board and Fayyaz Elahi.