RECORDER REPORT
www.brecorder.com/news/stocks-and-bonds/pakistan/1143061:news.html
ISLAMABAD (January 13, 2011) : Pakistan is facing problems in arranging
funds for much-trumpeted Bhasha dam hydropower project as the Untied
States, following multinational financial agencies such as the World
Bank, has declined Pakistan's call for funds for this key project and
help it plug growing power shortfall.
Sources in the Planning Commission told Business Recorder that the US
has flatly rejected Pakistan's request for funds and instead asked
Islamabad to focus on small projects for enhancing its power projection
to meet growing demand. After a negative response from the World Bank
for providing finances to Pakistan to help build Basha dam as it was
Pakistan's only mega hydropower project for which the government of
Pakistan has already completed the paper work, the US was seen as a
possible fund supplier and on the same ground a formal request for
funding was made to Obama administration but the answer from it was not
encouraging. Negative US response in terms of raising funds for Basha
dam has put Pakistan into a difficult situation.
According to the officials of the Planning Commission, the government
does have any other alternative to approach for raising funds for Basha
dam. However they do confirm that despite negative response to its
efforts made so far for raising funds for Basha dam, the government of
Pakistan was working on the project. "We have no other option but to
keep on pushing Basha dam project ahead as per its original plan as the
ideal project in terms of its cost and completion period," the official
said.
Pakistan is facing acute power shortfall for last many years and at the
same time its consumers are faced with a hard time wherein they do not
have electricity for hours in a day but they are forced to pay higher
rates of electricity. Pakistani energy experts are of the view that
imbalance in Pakistan's power mix was a basic reason of high tariff
despite longer power outages throughout the year.
They advocate more power generation from hydro source to correct energy
mix and ensure cheaper electricity to consumers. For it Basha dam with a
capacity to produce 4500 MW electricity is single hope of the
government. As per original design, Basha dam needs roughly $8 billion
which is comparatively less than any other hydropower project of such a
huge capacity and it can be completed in four to five years again much
less time required to complete such a project.
The experts are of the opinion that Basha dam project like many others
is a victim of international politics. They refer the World Bank's
decline for Pakistan's request for funding this project in support of
their arguments. The World Bank is not ready to fund Basha dam on the
ground that it is located in a controversial territory.
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