ISLAMABAD, June 11: The government has allocated Rs76.2 billion for generating 2,200MW electricity to reduce loadshedding.

Tenders for the Diamer-Bhasha dam project will also be floated next year and the government expects work on the dam’s construction to start by mid-2009.

The power generation capacity is expected to be increased from 20,097MW now to 22,297MW in the next financial year with the addition of 2,200MW, says the Annual Plan 2008-09. This includes 1,297MW from rental plants and 615MW to be received from Independent Power Producers (IPPs). Nearly 205MW of Korangi Thermal Power Station and another 200MW coming from IPPs are expected to be added to the KESC system.

A total of 1500MW thermal power projects have been envisaged in Dadu, Guddu and Faisalabad in the next financial year.

The government has also planned generation of an aggregated 30MW in Northern Areas through Naltar-III and Naltar-V.