Energy aid: US releases $280m for two key dam projects

The funds are expected to contribute towards increasing electricity supply to the national grid.

Our Correspondent August 04, 2012


The United States has released $280 million in immediate funds to support improvements in Mangla Dam and complete due diligence on the Kurram Tangi Dam on Friday. The funds are expected to contribute towards increasing electricity supply to the national grid and help overcome the burgeoning energy crisis in the country.

A statement released by the US embassy said that relieving Pakistan’s energy crisis was a top priority for the US civilian assistance program, citing the release of funds as the “latest example of the United States’ long-term and enduring support for Pakistan’s energy sector and for the people of Pakistan”.

Under the Kerry-Lugar funding, United States has been supporting large scale, impact-oriented infrastructure projects aimed at meeting the energy shortfall in Pakistan. The projects, meant to increase energy production as well as improve electricity distribution, are expected to add 900 megawatts to the national grid by 2013.

The financing for dam projects follows United States existing support in the Gomal Zam Dam, Satpara Dam, and Tarbela Dam projects which will generate 120 megawatts upon completion.

“Our institutional support ranges from improving the governance of the power sector to strengthening the performance of Pakistan’s power distribution companies. We are helping develop new policies to rationalise pricing, reduce subsidies, increase revenues, and improve the distribution of energy resources,” the statement added.

This latest tranche of funding follows the release of $1.1 billion in the long overdue Coalition Support Funds (CSF) on Thursday demonstrating a marked improvement in bilateral relations between Pakistan and the United States.

The CSF funds, along with other financial disbursements, had been halted after relations between the two countries soured in the aftermath of the Salala attack. However, the reopening of Nato supply routes have resulted in continous US assistance towards infrastructure projects in the country.

Published in The Express Tribune, August 4th, 2012.


Raheem Bukhsh | 11 years ago | Reply

We loose $ 1 Billion per year in loses at Pakistan Steel, Railways and PIA. What is point of aid? All we need is to run govt institutions honestly and competently. Otherwise no aid no matter how much it is can fill the bellys of cuurent corrupt government.

BruteForce | 11 years ago | Reply

Pakistanis do not need "the great satan's" money. They have another kaffir country(China) who will look after them. Please take back the money and give it to others.

The comment I am expecting from the Right Wingers.

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ