Pakistan to seek $27.6bn from FoDP for six energy projects

[Naveed Yaseen]

ISLAMABAD (August 19 2009): Pakistan will present six energy projects, costing $27.614 billion, before the Friends of Democratic Pakistan (FoDP) in a meeting scheduled in Istanbul on September 24. Sources in Economic Affairs Division (EAD) told Business Recorder that the government would table projects of energy including $11.339 billion Diamer Bhasha dam, Kurram Tangi Multipurpose Dam, Munda Dam project, Dasu Hydropower Project, Bunji Hydropower Project and Bara Dam Project.

In water sector, the government will also seek financing for construction of 32 small dams, costing Rs 114.750 billion, and Khanki Barrage, Punjab, project, worth Rs 23.442 billion. The government is working to build Diamer Bhasha dam to generate 4500 megawatt per day and Pakistan will get total economic benefit of $112.939 billion from Diamer Bhasha Dam project through sale of power generated at the dam and agriculture benefits.

Central Development Working Part (CDWP) of Planning Commission in its meeting held on July 17 approved the construction of Bhasha dam project for which the government has allocated Rs 15 billion in Public Sector Development Programme (CDWP) 2009-10. Pakistan will also be seeking financing for Regional Opportunity Zones for Trade in FATA, NWFP, Balochistan and AJK, costing Rs 3 billion. The project is at concept stage, and its main purpose is to promote trade in backward areas of FATA, NWFP, Balochistan and AJK.

FoDP will be requested to finance "The Establishment of Cool Chain System under NTC Improvement Project", worth Rs 6 billion. The cool chain system will consist of Export/Pack houses and testing laboratories, cold storages and refrigerated container yards will be operated as common facility centers (CFCs). The long-term objective of the project is efficient distribution of perishable items in the domestic market for the economic benefits of all stakeholders especially growers, traders and consumers.

The government has planned to initiate work on Establishment of E-beam based Irradiation Facility project at the cost of Rs 668 million. Food products are perishable and have to be preserved and stored properly so as to keep them in good condition for consumption. One of the techniques popular in different countries is irradiation defined as the process of exposing food products to ionizing radiation for preservation. Food irradiation offers three basic benefits: increasing shelf life, improving food safety and meeting quarantine requirements of countries importing these products. Pakistan will request financing for this project.

Pakistan is also working on SME Business Support Fund at a cost of Rs 880 million to enable SMEs to effectively utilise external business development services in an effort to enhance revenue generating ability and profitability. The other project 'Establishment of Floriculture Common Facility Farm', costing Rs 725 million, will be on the agenda and the government will seek financing from FoDP.

The flower trade across the world is changing very rapidly and more flowers are required for the fast developing impulse sales in the mass-market. Keeping this objective in mind, the government is considering to establish Floriculture Common Facility Farms in each province, enabling farmers to grow export-oriented flowers on large scale.

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