ADB to provide $780 million for energy efficiency program

[Naveed Yaseen]

* Multi-tranche financing facility to aid short, medium-term energy efficiency projects
* ADB to extend $150m to Punjab to boost growth, social services

ISLAMABAD: The Asian Development Bank (ADB) is extending $780 million to the country through a multi-tranche financing facility for energy efficiency projects that will help cater to the country’s growing energy needs and reduce its reliance on costly fossil fuels.

The $1.18 billion Energy Efficiency Investment Programme underpins Pakistan’s first-ever initiative to make both the pursuit of energy security and low-carbon growth a single strategic priority.

The 10-year programme puts energy efficiency and adoption of clean technologies at the heart of government planning and public investments, said an ADB press release received on Thursday.

Assistance: The multi-tranche financing facility will aid short to medium-term energy efficiency projects, including the replacement of incandescent light bulbs with more efficient and cost-effective compact fluorescent lamps.

The facility, which will release funds in tranches, will provide for a portion of the government’s 10-year energy efficiency investment plan, estimated at $3.8 billion.

Targeted energy savings under the programme will reduce the country’s energy intensity, while cutting greenhouse gas emissions by an estimated 30 percent.

The overall gains in annual savings by 2019 are expected to be around $4 billion and would provide major social benefits, such as increased household incomes, jobs, and reduced poverty levels.

The programme will help the government reduce public expenditures and subsidies, easing the debt problem in the power sector, which has weighed on attempts at improvements in the past.

Projects in the programme are also expected to be eligible for earning carbon revenues under the Clean Development Mechanism of the Kyoto Protocol.

Punjab loan: Also, the ADB on Thursday signed an agreement to loan $150 million to the Punjab Government Efficiency Improvement Programme – sub programme 2.

The main objectives under the Punjab Government Efficiency Improvement Programme are: (i) to improve financial management (ii) contingent liability management (iii) improving civil service management and (iv) private sector participation.

The programme aims at integrating top down strategic resource allocation and button an output based budgeting and broadening the tax base and improving tax administration. app/staff report

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