Power woes: CDWP gives green light to CASA power project

Approves Rs31.9b for transmission line that will see Pakistan receive 1,000MW electricity from Tajikistan.


Shahbaz Rana April 22, 2015
Minister for Planning, Development and Reforms Ahsan Iqbal chairing the CDWP meeting in Islamabad. PHOTO: PID

ISLAMABAD:


Pakistan on Wednesday cleared funds for a Rs31.9-billion transmission line project aimed at receiving 1,000MW electricity from Tajikistan under a Central Asia-South Asia (Casa) power project.  


The Central Development Working Party (CDWP) recommended the 500kv high voltage transmission system project between Tajikistan and Pakistan to interconnect four importing and exporting nations’ power grids. The project will now be tabled in front of the Executive Committee of National Economic Council (Ecnec) for a final decision.

The approval came just a day before contracting states are set to sign four separate power purchase agreements in Turkey.

The CDWP has the mandate to approve projects up to Rs3 billion and mega projects going over the limit can only be sanctioned by Ecnec.

The Casa-1000 transmission line to Peshawar would be capable of delivering 1,300MW of electricity. Out of that, Pakistan’s share is 1,000MW and the remaining 300MW will be taken by Afghanistan. Kyrgyzstan and Tajikistan will export their surplus electricity and the transmission line project is expected to be implemented in a period of three and a half years.

Out of Rs31.9 billion, World Bank will provide Rs17.8 billion loan for the project. The government has already allocated Rs4 billion in the current fiscal year’s development programme to commence work on the scheme.

The CDWP also cleared Rs14.2 billion for the evacuation of power from 1,320 megawatts to two power plants that will be set up at Bin Qasim under the Pak-China Economic Corridor.

PM’s national health scheme

The Rs9.2 billion National Health Insurance Programme was also brought for approval. The government deferred a final decision on the Insurance Scheme due to split opinion over its mode of financing. The Ministry of Planning and Development is reluctant to treat it as development spending and wants the Ministry of Finance to pick up the cost, said an official. He said Planning Minister Ahsan Iqbal will take up the matter with Prime Minister Nawaz Sharif.

The Ministry of National Health, Services and Coordination informed the CDWP that the four provinces have agreed to share a portion of the total cost of the project. The federal government will pick the primary health service related insurance cost while the provinces will bear the tertiary health insurance cost.

The premier has envisioned the three-year Rs9.2 billion scheme to ensure 100% health insurance for the poorest segments of the society. The scheme promises health coverage for 60% of the poorest families or roughly for 100 million people, according to project documents.

In the first phase, the scheme will be implemented in four districts of each of the four provinces. To cover the population, the government will require Rs45 billion funds.

Out of Rs9.2 billion, Rs8.8 billion have been earmarked for payment of the premium in phase one. The government has proposed Rs2, 000 per family annual premium for daycare and maternity services with addition of Rs500 per family for priority treatment. Priority treatment will include cardiovascular diseases, diabetes, burns, road traffic accidents, rental and other chronic diseases.

The proposal also includes Rs50,000 per family annual premium on floating basis, which should come from provincial and federal development budgets for tertiary care. Another Rs250,000 per family premium is also proposed for federal hospitalisation against identified treatment protocols. The federal government has proposed to indentify targeted people by using the database of National Database Registration Authority.

EPI Programme

The CDWP deferred a final decision on the Expanded Programme on Immunisation (EPI) at a revised cost of Rs26.9 billion. The Ministry of Health, Services and Regulations sought Rs1.9 billion more funds for procuring vaccines that are not funded by the foreign donors.

Under an arrangement, Pakistan will have to procure 7% of the total required vaccines before the international partners supply the remaining 93% vaccines. The EPI, administered by the WHO, Unicef and the Pakistan government, is already working to interrupt the polio virus in the country. The CDWP had objections over the cost of the project and high ratio of wastage of the vaccines.

Published in The Express Tribune, April 23rd, 2015.

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COMMENTS (1)

Rizwan | 8 years ago | Reply Every day our country is getting stronger. This is the beginning of our resurgence and I think we are entering a new and exciting phase with already accelerating growth rates, CPEC, success of Zarb e azb. Pakistan zindabad
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