ISLAMABAD, Feb 15: The Asian Development Bank (ADB) has assured Pakistan of technical and financial support for major power sector projects and decided to invest $3 billion in the next three years in the country for improvement of power transmission and distribution system.

ADB Country Director Dr Peter Fedon announced this in an official statement issued here on Thursday after leading a delegation which held talks with Federal Minister for Water Liaquat Ali Jatoi.

The minister told the ADB delegation that Pakistan was also focusing on alternative energy projects such as wind power, solar energy, coal-based generation and hydel power and that the bank’s support in this sector would be of great help.

The $3 billion assistance will be used in upgradation of power distribution systems and transmission lines in order to increase system efficiency and supply of electricity to consumers besides major rehabilitation and infrastructure projects in the water sector.

Mr Jatoi informed that Pakistan was making rapid economic growth, which was the result of viable economic activities in the country. The confidence of domestic and foreign investors was gaining new heights and the economy was now more stable, backed by transparent policies and good governance, he observed.

The power sector was currently undergoing reforms and restructuring and necessary ground work had been done in this regard, which were fully supported by the ADB, Mr Jatoi added.

He said to achieve the economic growth targets, set by the government, the power sector needed to increase its generation capacity, efficiency and coverage.

He stressed the need for coordinated meetings of the donors to expedite the progress on projects. He urged active role of the ADB in financing Diamer-Basha dam and other mega water sector projects including the next phase of flood protection programme.

Mr Fedon praised the efforts of the government for maintaining stable economic growth and offered both technical and financial assistance in this regard.

He said the ADB would focus on financial assistance of $500 million for renewable energy development, $1.2 billion for power transmission enhancement, $250 million for power distribution enhancement and $800 million for irrigated agriculture and water.

Resource related projects besides a number of technical assistance programmes for capacity building and relevant studies.

He informed about the new instruments of the bank for private sector partnership in infrastructure development in Pakistan.