WASHINGTON: The United States on Wednesday announced a $125 million contribution for the first phase of an energy programme in Pakistan aimed at increasing electricity output and conserving energy.

The funding will be aimed at repairing generation facilities, improving the overall effectiveness of local utilities providers, replacing inefficient tubewell pumps and promoting energy efficiency.

The first phase will cover six projects aimed at reducing the frequency of electricity blackouts that interfere with commerce and have plagued the Pakistani economy.

These six projects include:

1. Replacing or repairing 11,000 agricultural irrigation tubewell pumps, a major component of electricity transmission used by a majority of farmers across Pakistan.

Rehabilitating, refurbishing, and upgrading targeted components of the Jamshoro, Muzaffargarh, and Guddu thermal power stations to recapture significant amounts of their lost capacity.

2. Jamshoro thermal power station: Improvements at Jamshoro thermal power station, which sits on the banks of the Indus River near the city of Hyderabad, will result in an additional 530 GWh/year of electricity for the national grid.

3. Muzaffargarh thermal power station: Improvements at the Muzaffargarh thermal power station, located on the banks of the Indus and Chenab rivers near the city of Multan, will result in 165 MW and a production of approximately 1,185 GWh/year of electricity for the national grid, saving $17 million in fuel per year.

4. Guddu thermal power station: A targeted rehabilitation project to improve the ageing and deteriorating gas turbines at the Guddu thermal power station will restore 33 to 55 MW of the power station’s lost capacity and produce an additional 237 to 372 GWh/year for the national grid. The more efficient units will save approximately $2.3 million per year.

5. Tarbela Dam hydroelectric power station: Installing higher performance insulation windings and supplying spare parts at the Tarbela Dam hydroelectric power station, located on the Indus River in the NWFP, will increase the station’s capacity to 80 MW -- or 192 million kilowatt hours – of power. The funding will also provide additional training for staff.

6. Electricity Distribution Company Performance Improvement: The US will work closely with four of the nine public electricity distribution companies over the next three years, aiming to lower levels of electricity loss so they are comparable to those of well-run distribution companies in developed countries. Every one per cent of system-wide loss reduction represents $97 million in savings to Pakistani consumers and additional power for economic development.

Electric power distribution companies in Pakistan lose almost a third of the electricity they purchase, and some companies lose 50 per cent or more. These losses are due to weak management, non-payment by government and consumers for electricity consumed, and high technical losses from worn-out equipment.