The World Bank and Pakistan have signed on Thursday, agreements of five projects for a total amount of US$ 1.125 billion, out of which $ 35 million will be provided as a grant.
Dr. Waqar Masood Khan, Secretary Economic Affairs Division and Rachid Benmassoud, Country Director of the World Bank signed the agreements.
Dr. Waqar Masood said on the occasion that the World Bank and Pakistan were solid partner and the World Bank has made remarkable contribution towards the country’s development. Rachid Benmassoud said “We will continue our support to Pakistan for the extension of its development process and I hope that the government will successfully implement all the projects”.
The major agreement that was signed was for the fourth extension of Tarbela Hydropower Project. The World Bank will provide $840 million for the project to facilitate a sustainable expansion in Pakistan’s electricity generation capacity.
The Project will strengthen WAPDA’s capacity to develop the country’s hydropower resources. The major components include construction of power house and modification to the tunnel and the installation of turbines, generators, transformers and ancillary electro mechanical equipment.
Low cost non-carbon renewable energy of about 4,000 GWh will be generated annually through the new project. The average cost of electricity generated through the Project will be 2.49 cents/KWh. The project will also lay the foundation for a subsequent fifth extension of Tarbela Hydropower capacity.
Chairman, Water and Power Development Authority (WAPDA), Shakil Durrani said on the occasion that with this project, 1,410 MW hydropower plant will be constructed on Tarbela Dam with an already constructed tunnel. He said the project would be completed in three years and work on the project would be started within few weeks after formal approval of the World Bank.
Punjab Irrigated Agriculture Productivity Improvement Project:
The World Bank will also provide $ 250 million International Development Association (IDA) credit for the project. The objective of the project is to improve productivity of water use in irrigated agriculture. This will be achieved through improved physical delivery efficiency and irrigation practices, crop diversification and effective application of inputs which will translate into greater agriculture output per unit of water used.
REVITALISATION OF HEALTH SERVICES IN KP: A Multi-Donor Trust Fund (MDTF) grant amounting to $ 16 million will be provided to revitalize and rehabilitate health services through Public-Private Partnership in the conflict affected districts of KPK. The Project will be implemented by the health department of KPK.
FATA URBAN CENTER PROJECT: An MDTF grant of $7 million will be provided to improve urban services and management in Khar and Bajaur Agency to develop a framework for urban management in FATA. FATA Secretariat will implement the project.
FATA RURAL LIVELIHOOD, COMMUNITY INFRASTRUCTURE PROJECT: An MDTF grant of $ 12 million will be provided to improve livelihoods and access to basic service infrastructure in the Mohmand and Bajuar agencies in FATA and possible in cluster of villages in southern agencies that are becoming accessible and where families are being facilitated by the Government to return and re- establish their livelihood. Meanwhile another signing agreement was made between Italy and Pakistan in which Italy will provide Euro 57.7 million as a soft loan for flood affected people in the country. The loan would be interest free and the grace period for the loan was set as 40 years.
