PESHAWAR: The United States will provide $1 million grant to Khyber Pakhtunkhwa for feasibility of a 400-435 megawatt gas fired electricity plant in the province.

An agreement in this regard was singed by US Consul General in Peshawar Escobar Gabriel and general manager, thermal of the Pakhtunkhwa Hydel Development Organisation Syed Zainullah Shah on Wednesday. It is the first-ever US-Pakistan energy related partnership in Khyber Pakhtunkhwa, according to a press release issued by the US Consulate.

The consul general signed the grant on behalf of the US Trade and Development Agency (USTDA), which will enable the Pakhtunkhwa Energy Development Organisation to conduct feasibility study on the technical, economic, and financial viability of the project.

Speaking on the occasion, Mr Gabriel said that they hoped the plant would eventually expand to produce double the initial capacity of 435 megawatts. “This USTDA grant is another example of our longstanding partnership with Pakistan and of the United States’ commitment to helping Pakistan resolve its energy issues,” he stressed.

Zainullah Shah expressed appreciation for American support of Pakistan’s energy sector in general and KP in particular.

The USTDA, which is funded by the US Congress, provides grant funding to overseas project sponsors for planning of projects that support the development of modern infrastructure and an open trading system.

Published in Dawn, September 25th , 2014