New US Ambassador to Pakistan, Richard G. Olson. - File Photo

ISLAMABAD: The United States on Wednesday announced a grant of 150 million dollars for the expansion of the Mangla Dam power plant, DawnNews reported.

The project is expected to generate 310 megawatts of electricity.

Addressing the inauguration ceremony of the project at Mangla Power House, US Ambassador to Pakistan Richard Olson said the US would provide 150 million dollars for the expansion of the Mangla power station.

Olson said a meeting of the Energy Working Group would be held in Islamabad in the month of December, adding that, the construction of the Diamir-Bhasha Dam was a priority for the US.

Addressing the ceremony, Chairman Water and Power Development Authority (Wapda) Syed Raghib Abbas Shah said 400 million dollars would be spent on the expansion of the Mangla power house which would be able to provide additional production for the next 40 years.

“The fourth phase expansion work will begin in March 2012,” Shah said.

Moreover, he said that the feasibility report of five mega projects was in the process of completion.

He also said that in the next five years, 5,000 megawatts electricity would be added to the national grid which would benefit 1 million consumers.