ISLAMABAD – The US has assured Pakistan that it would take up the issue of financing for $13 billion Diamer Bhasha dam under the Kerry Lugar Bermen (KLB) bill disbursements for the next fiscal year 2011-12.
An official source said US had asked Pakistan to perform the ground breaking ceremony of the project that would help getting timely financing for the project from the US government from next fiscal year’s releases under KLB bill.
He said no details had been worked out about the financing amount, but what was most important that financing from the US would help attract financing from other bilateral and multilateral donors. “The government is actively working on starting actual work on the project to tap the opportunity.” The government has already given approval to the Water and Power Development Authority (WAPDA) to raise Rs 20 billion from the market through sukuk and term finance certificates (TFC).
The government would provide the necessary guarantees while WAPDA would raise the amount from the market and later repay it through its own resources. Meanwhile, an official told Pakistan Today that the government is hopeful that the World Bank will approve $125 million bill for the Citizen Damage Compensation Fund (CDCF) for the rehabilitation flood-affected people by the middle of March this year.
The source said the approval from the World Bank would be reciprocated by the United States with a grant of $190 million, while China had already contributed $10 million to the fund.
