Pakistan seeks $810m ADB loan for power
Sanjay Jha | July 10, 2008 at 01:45 amby
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To meet the power deficit in the country Pakistani government is negotiating for a credit facility to set up the power projects. Government is hoping to eradicated the power woes with new facilities.
The Asian Development Bank has negotiated a credit facility of $810 million dollars with Pakistan for power projects, and the inflows are expected to begin in September, an official said on Wednesday.
“The facility to be implemented over the next 10 years has been negotiated with power distribution companies and the formal approval by the bank is expected in August,” said an official with knowledge of the transaction.
“The disbursement is likely to start from September or October,” said the official, who declined to be identified. The loan will help power distribution companies upgrade equipment and systems, over-stressed by the rising demand for power, the official said. Pakistan is facing a shortfall of about 4,000 MW because of rising demand, a failure to build more power stations and transmission line losses.
Fresh foreign inflows will help boost the country’s dwindling foreign exchange reserves, which the central bank said last week were at $11.284 billion compared with an all-time high of $16.486 billion on Oct 31, 2007.
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