World Bank to finance two multi-million projects in Pakistan

World Bank to finance two multi-million projects in Pakistan

Tuesday, March 20, 2012: The World Bank will finance two projects, in energy and irrigation sector, of Pakistan. The total worth of these two projects is estimated to be around $1.09 billion.

The purpose of approving these two projects in to supplement Pakistan’s growth agenda for reducing poverty.

Pakistan is only utilizing 15 percent of its total hydropower generation capacity. Therefore, the investment from World Bank will help in furthering the power generation capacity.

The World Bank held that the $840 million Tarbela IV Extension Hydropower Project will add power generation capacity of 1,410 megawatts, contributing a crucial source of electricity for the economic growth and development of Pakistan

The Tarbela IV Extension Hydropower Project will use the existing dam, tunnel, roads and transmission line for generating additional electricity in summer months when demand for electricity and river flows are high, it added.

Rachid Benmessaoud, World Bank country director for Pakistan, said, “The beauty of this project is that it will help Pakistan reduce the gap between supply and demand of electricity by maximizing the benefits of existing infrastructure
of Tarbela Dam without requiring any land acquisition or relocation of population.”

“The direct beneficiaries will be millions of energy users, including industry, households and farmers who would get more electricity at a lower cost and suffer fewer blackouts.”

Project two is the $250 million Punjab Irrigated Agriculture Productivity Improvement Program Project is aimed at getting maximum productivity out of irrigation water by weaning farmers away from the traditional and “wasteful”
flood irrigation.

The project will stress more modern methods like drip and sprinkler irrigation systems, which in turn will encourage crop diversification, it said.

The hydropower project includes a $400 million, 21-year loan from the Bank’s International Bank of Reconstruction and Development that includes a grace period of six years.

The remaining $440 million of the Tarbela project and $250 million for the irrigation project are credits from the International Development Association, the World Bank’s concessionary lending arm.

Short URL: https://www.newspakistan.pk/?p=16574

Posted by Wajahat Javed on Mar 21 2012. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry