Russia Offers $500m for Electricity Import Project
Friday 29 June 2012
ISLAMABAD (Pakistan News Service) – Russia has offered an investment of US $500 million in establishing a transmission system for the CASA-1000 project, which will bring electricity from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan.
The offer came in a meeting of a six-member Russian delegation, headed by State Secretary and Deputy Energy Minister YP Sentyurin, with Federal Water and Power Minister Ahmad Mukhtar here on Thursday. The two sides discussed various matters of mutual interest and cooperation in the energy sector. They agreed to sign a memorandum of understanding for energy cooperation and a draft will be prepared in this regard for consideration.
According to a statement issued here, the Russian delegates expressed interest in investing $500 million in the CASA-1000 project. They were also willing to provide assistance for modernisation and rehabilitation of Muzaffargarh and Guddu thermal power plants and their conversion to enable them to run on cheaper fuel, like coal.
Earlier welcoming the delegation, Ahmad Mukhtar asked them to help Pakistan modernise hydroelectric plants, participate in construction of 500-kilovolt transmission line for import of 1,000 megawatts of electricity from Iran and other projects like Tarbela 4th Extension, coal and renewable energy and transmission lines.
He recalled that Russian companies had already developed many big projects in Pakistan and assured them of continuous and unwavering cooperation.
Separately, a delegation of the Asian Development Bank (ADB), headed by Central and West Asia Department Director General Klaus Gerhaeusser, held a meeting with Water and Power Minister Ahmad Mukhtar.
Mukhtar discussed the possibility of financial and technical assistance for mega water and power projects like Bhasha Dam. The delegation was also informed about the process of land acquisition for the dam and compensation package for displaced people.
Terming Bhasha Dam a very critical project, the ADB delegation assured the minister of support for big water projects including Bhasha Dam. The bank has already provided $1.5 billion for energy projects and says it will continue financial and technical support for other projects as well.