Sindh may lose $500m ADB grant

KARACHI: Sindh’s lack of interest in a $500 million grant reserved by the ADB for developing alternative energy resources could cause the grant to be abolished.

The Asian Development Bank (ADB) had been sending letters to the Sindh government since 2007, but the lack of interest shown by the Sindh government and the Alternative Energy Board may lead to Pakistan eventually losing the chance to get the grant.

The ADB has issued a warning letter to the Sindh government which said if the government does not approach the bank till December 2010, the grant will be abolished.

The ADB had also reserved funds for other provinces. Gilgit, Punjab, Khyber-Pakhtunkhwa have received their grants after conducting talks with the ADB, sources revealed.

The ADB is also willing to give financial aid for the 35-megawatt bio-energy project in Bhains Colony which is also facing delay due to a lack of funds, said sources.

The World Bank had already withdrawn its offer to give $250 million for the Thar coal project due to a rift over the project affairs being managed by the Sindh government and federal department for alternative energy.

The World Bank, besides financial aid for investment in the project, had also offered to prepare a feasibility plan and technical support for the project.

Published in The Express Tribune, June 25^th, 2010.