World Bank agrees to fund three hydro projects in K-P

Published: January 11, 2017

PESHAWAR: In the latest development, the World Bank has given the Khyber-Pakhtunkwa government a positive response for funding three hydropower projects.

“They [World Bank] have agreed to our request and are ready to grant loans for our three projects,” said a senior official of the K-P energy and power department who held a meeting with the international financial institution’s delegation in Islamabad on Monday.

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The K-P government has been negotiating with the World Bank for securing a Rs70 billion loan to finance its developmental projects, however, no deal has been finalized yet.

“We don’t know about the rest of the projects but they [World Bank] are giving us loan and the first tranche would be received in July,” said the official, adding that $100 million would be paid in the first tranche for feasibility studies and detail designing and capacity building for the three projects.

The projects include Gabral-Kalam Hydro Power Project (HPP) in Swat which will add 110 megawatts to the grid. The project is estimated to cost $413 million. It also includes Barikot Patrak hydropower project in Upper Dir which is 47 megawatts with a cost of $148 million. Shringal-Patrak hydropower project is the third project which will add 22megawatts and is estimated to cost $83 million.

“The second tranche would be given for the construction of these projects. They are okay with procurement rules and guidelines set down by the K-P government and the projects would be executed under our own guidelines,” said the official.

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According to the official, the bank would also give Rs5 million technical assistance for making of policies. “We don’t have prepared policies including energy conservation policy, renewable energy policy, impact of the 18th Amendment on energy sector and this technical assistance would be used for carrying out studies and hiring consultancies to make these policies,” the official explained.

Published in The Express Tribune, January 11th, 2017.

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Reader Comments (1)

  • israr
    Jan 11, 2017 - 1:30PM

    fabulous step and these loans are almost interest free and for v long tenure that is good news for kp and Pakistan, I think the law to provide free or cheap electricity to locals before it would go into national grid, the 110 mwh means every hour almost 24/7 or lets say 20/7 that is 90% and free fuel, the gas and oil run plants are different as they have higher operating cost and produce a lot of pollution.Recommend

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