ADB approves $900m loan for Jamshoro coal power project
10 December, 2013
ISLAMABAD: The Asian Development Bank (ADB) has approved financing of $900 million for 1320MW Jamshoro power project for its conversation to coal.
The important proposal was approved by the ADB board with 75% votes in its favour, the Ministry of Finance announced on Monday. According to an official statement, Finance Minister Senator Ishaq Dar has thanked the ADB and all the countries which supported Pakistan's proposal for financing Jamshoro Power Project. The finance minister termed the approval as a breakthrough and a giant leap forward, which would pave the way for construction of coal-fuelled power plants being planned by Prime Minister Nawaz Sharif's government.
The government, he said, plans to construct coal power plants at Gadani with a total capacity of 6600MW as part of its policy of producing electricity through cheaper fuels like coal. The project would produce 11,320MW power, whereby two projects of 660MW would be constructed at the project site. The government plans to utilise 20% coal extracted from Thar upon conversion of this project to coal. This would help development of indigenous coal reserves of the country as well as reduce reliance on imported fuel or coal in subsequent years.
The 1320MW Jamshoro power project is considered as a vital project in the wake of the ongoing power shortages. Upon completion of this project the country would be able to bridge the electricity demand and supply gap. The approval of much needed financing for this vital project by the Asian Development Bank is being considered a success of the country. However, Ministry of Finance and Ministry of Water and Power have claimed different amounts approved by the ADB Board. Ministry of Finance has announced through an official press release that $900 million have been approved for the 1320MW Jamshoro power project, however, the Ministry of Water and Power has claimed that $1.1 billion for the project and this would produce 1200MW.
Prime Minister Nawaz Sharif Monday congratulated his team on the approval by the Asian Development Bank of funds for two coal-fired power projects at a cost of $1.2 billion, to add 1320MW to the national grid. The prime minister termed it "a major diplomatic and economic victory" for members of finance, water and power, economic affairs, and foreign office divisions, for the approval by the ADB's policy board for the coal-fired power projects at Jamshoro.