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Pakistan seeks $810m ADB loan for power

by Sanjay Jha | July 10, 2008 at 01:45 am

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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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tango48

at 02:12 on July 12th, 2008

currently the load shedding in islamabad is 6 hour / 24 hours, there are places where it is 25 hours out of 24, (which means that if there is light, then the next blink will be after 26 hours!! some progress, atlease it blinks). monsoons were supposed to bring relief, but the constant use has made the generators in power houses break down more frequently than usual, so stuck between the devil and the deep blue sea (literally in this case the government and the arabian sea!)