Pakistan will seek financial assistance from the United States for its planned mega hydel power projects, upgradation of the generation units and modernization of the transmission network during the two days of Pakistan United States energy dialogue that starts here from September 14.
According to an official source the US team would be given a detailed briefing on the current situation in the power sector, including bottlenecks in enhancing the installed generation capacity, transmission and distribution network, circular debt, planned increase in the power tariff, tapping of the wind power potential, smart grid and distribution mechanism and development of domestic natural gas resources, especially for tight and shale gas. During the extensive talks Pakistan will seek financial assistance from US for $ 12 billion Diamer Bhasha Dam. The financial assistance from US would pave the way for financial assistance from international financial institutions, the source said. US is already providing financial assistance for the Gomal Zam Dam in South Waziristan and for Satpara dam in Skardu Gilgit Baltistan.
The minister appreciated US funding for capacity enhancement programme of public sector power plants and replacement of tube well turbines with new energy efficient turbines to save electricity for DISCOs. He said US support for water and power projects would definitely attract the investment and donors in the sector. He also briefed on the new initiatives taken by the government like operation and maintenance contracts for GENCOs to private sector, conversion of thermal plants to cheaper fuel and upfront tariff for alternative energy projects, change of energy mix and use of indigenous resources for cheaper power generation. It is expected that such steps would work towards improving bilateral relationship between the two countries who have over the last few months witnessed fissures emerging in their long standing diplomatic relationship. The causes of the recent estrangement in ties between the two countries could be attributed to the decision by US policy makers to withhold payments to be made under the Coalition Support Fund. Pakistan has incurred costs in excess of $68b in the war on terror and there has been great public resentment over the extent of collateral damage suffered as a result of Pakistan being a party to the war.
The government would seek assistance of US agencies to assist in further development of country’s natural gas resources to provide long-term supply security for its electric power plants. US assistance would help improve its legal, regulatory, policy and fiscal regime to attract greater investment to develop those resources. The US Special Envoy and Coordinator for International Energy Affairs, Carlos Pascual along with a delegation called on the Minister for Water and Power, Syed Naveed Qamar and discussed various matters of cooperation in the energy sector. A statement issued after the meeting said that the US Special Envoy said that US was taking various steps to enhance cooperation in the energy sector in Pakistan. He said US was keen to address the energy issues and to support the future water and power projects. Some programmes were already under implementation through USAID and more would be discussed for financial and technical cooperation in the energy dialogue.