Germany to lend 40m euros for Warsak power station

Published September 17, 2015
The Germans will also give a grant of 10m euros for the rehabilitation of the TDPs in Fata.—Courtesy: Radio Pakistan
The Germans will also give a grant of 10m euros for the rehabilitation of the TDPs in Fata.—Courtesy: Radio Pakistan

ISLAMABAD: Germany will loan 40 million euros to Pakistan for the rehabilitation of the Warsak hydroelectric power station built over half a century ago on River Kabul in Khyber Pakhtunkhwa.

The Germans will also give a grant of 10m euros for the rehabilitation of the temporarily displaced persons (TDPs) in the Federally Administered Tribal Areas (Fata). Another 10m euros will go to KP’s regional infrastructure fund which aims to strengthen the implementation capacities of the district administration and enhance people’s participation in the decision-making process at the district level.

The agreements, which add up to Rs7 billion approximately, were signed on Wednesday during the Pak-German talks. Finance Minister Ishaq Dar headed the Pakistani side in talks and Deputy Minister for Economic and Development Cooperation, Thomas Silberhorn, led the German side. Funds will come from the KfW Development Bank.

Take a look: Haqqani network almost wiped out, Aziz assures German FM

According to Wapda, this is the second time that Warsak hydroelectric power station will be renovated. They plan to overcome several problems, including regaining the capacity loss of 30MW with reliable annual energy generation of 1,144GWh, upgrade and modernise the old system, and achieve another life cycle of 30 to 40 years.

The Warsak dam and hydroelectric power station was initially financed by the Canadian government under the Colombo Plan and was built in two phases in 1960. The current rehabilitation work will be financed by Germany, France and the European Union.

Pak-German bilateral negotiations will be held in Berlin from Oct 28-30 to explore avenues of expanding bilateral socio and economic cooperation. During the meeting with Mr Dar, the German minister said the two countries would mutually benefit from closer ties built on development cooperation, increased trade and intensified business contacts.

Pakistan has embarked on structural reforms in areas of governance, tax and energy which were needed to reach the country’s full growth potential. “Progress is appreciable, but more needs to be done so that all citizens of the country benefit from these reforms,” said Mr Silbernhorn.

Mr Dar appreciated the German government’s assistance with the TDPs and development work in Fata.

Published in Dawn, September 17th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Worsening hunger
Updated 08 Dec, 2022

Worsening hunger

THAT the dollar liquidity crunch has started hurting the import of essential items such as vegetables and raw...
Bannu beheading
Updated 08 Dec, 2022

Bannu beheading

The state must take up the cudgels and neutralise barbarism before it spreads.
Smog misery
08 Dec, 2022

Smog misery

IF 2022 has taught us anything, it is that generations of reckless disregard for Mother Nature has accrued very ...
Disquiet on the western front
Updated 07 Dec, 2022

Disquiet on the western front

IT is very difficult for Pakistan to be delinked from Afghanistan, because of reasons of geography and history.
Fuel from Russia
07 Dec, 2022

Fuel from Russia

THE apparent headway made with Russia for the purchase of its crude oil, petrol and diesel at discounted prices is a...
More women SHOs
07 Dec, 2022

More women SHOs

IT is encouraging to see more employment avenues opening up for women in Pakistan, with an increasing number of...