Russia has offered an investment of $500 million in establishing a transmission system for the Central Asia South Asia 1,000-megawatt (CASA-1,000) power import project, which will bring electricity from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan.
The offer came in a meeting of a six-member Russian delegation, headed by State Secretary and Deputy Energy Minister YP Sentyurin, with Federal Water and Power Minister Ahmad Mukhtar here on Thursday.
The two sides discussed various matters of mutual interest and cooperation in the energy sector. They agreed to sign a memorandum of understanding for energy cooperation and a draft will be prepared in this regard for consideration.
According to a statement issued here, the Russian delegates expressed interest in investing $500 million in the CASA-1,000 project. They were also willing to provide assistance for modernisation and rehabilitation of Muzaffargarh and Guddu thermal power plants and their conversion to enable them to run on cheaper fuel, like coal.
Earlier welcoming the delegation, Ahmad Mukhtar asked them to help Pakistan modernise hydroelectric plants, participate in construction of 500-kilovolt transmission line for import of 1,000 megawatts of electricity from Iran and other projects like Tarbela 4th Extension, coal and renewable energy and transmission lines.
He recalled that Russian companies had already developed many big projects in Pakistan and assured them of continuous and unwavering cooperation.
Separately, a delegation of the Asian Development Bank (ADB), headed by Central and West Asia Department Director General Klaus Gerhaeusser, held a meeting with Water and Power Minister Ahmad Mukhtar.
Mukhtar discussed the possibility of financial and technical assistance for mega water and power projects like Bhasha Dam. The delegation was also informed about the process of land acquisition for the dam and compensation package for displaced people.
Terming Bhasha Dam a very critical project, the ADB delegation assured the minister of support for big water projects including Bhasha Dam.
The bank has already provided $1.5 billion for energy projects and says it will continue financial and technical support for other projects as well.
Moscow seeks IP pipeline feasibility study
Russia has sought a detailed engineering design and feasibility study on the Iran-Pakistan (IP) gas pipeline for evaluation before going ahead with financing the project.
German-based firm ILF is currently engaged in feasibility study of the vital gas import project and the report has not yet been completed. However, the engineering design has been prepared.
According to sources, a 12-member Russian delegation, headed by Deputy Energy Minister YP Sentyurin, made the demand in a meeting with Adviser to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain here on Thursday.
The Russian delegation is visiting Pakistan in connection with the second meeting of the Pakistan-Russia joint working group on energy cooperation.
Hussain assured the delegation that Pakistan would submit the detailed engineering design of the pipeline project.
According to a statement issued here, Hussain highlighted Pakistan’s urgent approach towards meeting its energy needs and said completion of mega gas projects including Turkmenistan-Afghanistan-Pakistan-India (TAPI) and IP pipelines was the country’s top priority. In this connection, he praised the Russian offer of cooperation for the gas import projects.
Petroleum Secretary Ejaz Chaudhry, who was present in the meeting, briefed the delegation on progress on the pipeline projects and stressed the need for expanding the bilateral treaty framework of cooperation in the oil and gas sector.
The delegation was informed about the extensive work done on formulating shale and tight gas policies, which may be of interest to Moscow.
Both sides agreed that details of the two mega gas projects would be shared immediately and financial matters would remain negotiable.
Published in The Express Tribune, June 29th, 2012.
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Free lunch , well we don't need neither we can afford an other friend like America despite the fact they may be doing some work in Pakistan and are key foreign investor/exporter but all this not on the expense of giving them a free hand to attack us whenever they want too and treat us like they own us . All we need is governance i.e people should be held accountable for their actions this include not only people in government but also some generals and other army people as well plus education system .They will certainly have to change their basic mentality and create an educated generation not via Madrassas but conventional system first! Sir this is what we need . AGREE .
@Reaper: "@G. Din: Exactly what kind of benefit Russia can obtain from us ?" Do not undersell yourself! Russia wants to sell certain technologies and you are in the market for some of those. So bargain. Above all, deal straight and people will go out of their way to help you achieve what you want to achieve (if there is anything you do want to achieve). Not because of any altruistic reasons but this is a world of "you scratch my back now, I will scratch your back later". Both need scratching at some point in time. The problem with Muslims, in general, and Pakistanis, in particular, is that they thing they are so brainy that they can outsmart anyone else and hitch a free ride. This is what puts everyone off. Deal straight and with mutual respect, my friends, and you will make friends even of your adversaries. Today, India is friends both with Russia and America. It was not always so. And, you have made enemies of both!
@Reaper: Its high time that Pakistanis learn to acknowledge, that there is no free Lunch ! This Nation has gone backwards over last 60 years and it will take another 50 years at least to move on, and they will certainly have to change their basic mentality and create an educated generation not via Madrassas but conventional system first! Until than its going to be living on other people's handouts and they are also getting scarce ! So much for a Nation with Nuclear Power, yet can provide its peole with basic Electricity 24/7, let's not even discuss welfare and other social issues !!
@G. Din: Exactly what kind of benefit Russia can obtain from us ? Like can we give them some type technology they don't have , we might be able to give some nuclear bombs Oh wait they got already alot of bombs .That was my point actually what is in all of this for them ? As Iran under sanctions from the UN they have a reason to have allies to trade with as well as China have some reasons .
@reaper you have a point makes lot of sense.
@Reaper: "I guess we are again going to be used by other countries for their own personal benefits." No one is in any kind of business for charity and/ or altruism. Grow up! Think "Mutual Benefit", rather than a free ride!
All of the sudden now we are hearing about Russia helping us with IP pipeline , Steel mill extension etc stuff . I wonder where they were in last couple of years , why so much assistance now ? I guess we are again going to be used by other countries for their own personal benefits.
so pakistan will get electricity from a plant in russia but having its supply lines passing through afghanistan. electricity supply will be erratic i guess
i think Russia is jst playing with us .... if you read the history of Russia ...it never leaves its revenge ..... And also any thing involving Afghanistan has its future down the hole ......
@Hammad
India is already doing what you said. India maintains good relations with all nations except Pakistan. Last year India attracted $48 billion in FDI while Pakistan managed to get a paltry $700 million. Because Pakistanis obsess with fantasy alliances like Pakistan-Turkey-China while Indians are extremely pragmatic.
Iran has been offering cheap electricity and solutions but we don't accept it. Why can't we think about our country men first!!
@Hammad: The problem is we send terrorists all over the world and most countries see us as a Monster. that is why our neighbour india gets hundreds of billions in investment from countries including russia and we get offered peanuts
Not only Russia but we should have good relations (economic, military, brotherly ) with all nations who don't send killers in the cover of diplomats. We need to distance ourselves from that monster nation. Sooner the better.