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.

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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

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