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ADB to lend $100m for power plant in Balochistan – The Express Tribune
KARACHI: The Asian Development Bank (ADB) said on Tuesday it will lend up to $100 million to UK based International Power to build a Pakistani gas-fired plant to help address the countrys energy crisis.
The 404 megawatt power plant in Balochistan is scheduled to be completed by September 2013.
Nuclear-armed Pakistan has long struggled to supply enough electricity and natural gas to consumers and industry, with total energy demand often outstripping supply by 22 percent or about 6,000 MW according to analysts in summer months.
The problem is likely to worsen without new generating capacity, the ADB said, but questions remain whether the new plant will be able to make much difference.
On the face on it, it is a reasonably-sized plant and will help to alleviate the power shortage, Khalid Iqbal Siqqiqui, director at Invest & Finance Securities Ltd, told Reuters.
But again the problem is, will it be able to run? There are many plants right now which are idle because there is a shortage of gas.
Pakistan also suffers from a shortfall in the production of natural gas.
Power cuts sparked violent protests in 2010 after the government implemented unscheduled power cuts lasting up to 20 hours a day in rural areas, heavily impacting industrial production.
International Power is the single largest private investor in Pakistans electricity sector.
ADBs support for this project will reassure the developer and encourage co-financing support for future projects, which otherwise might not be forthcoming, said Takeo Koike, Senior Investment Specialist in ADBs Private Sector Operations Department.
KARACHI: The Asian Development Bank (ADB) said on Tuesday it will lend up to $100 million to UK based International Power to build a Pakistani gas-fired plant to help address the countrys energy crisis.
The 404 megawatt power plant in Balochistan is scheduled to be completed by September 2013.
Nuclear-armed Pakistan has long struggled to supply enough electricity and natural gas to consumers and industry, with total energy demand often outstripping supply by 22 percent or about 6,000 MW according to analysts in summer months.
The problem is likely to worsen without new generating capacity, the ADB said, but questions remain whether the new plant will be able to make much difference.
On the face on it, it is a reasonably-sized plant and will help to alleviate the power shortage, Khalid Iqbal Siqqiqui, director at Invest & Finance Securities Ltd, told Reuters.
But again the problem is, will it be able to run? There are many plants right now which are idle because there is a shortage of gas.
Pakistan also suffers from a shortfall in the production of natural gas.
Power cuts sparked violent protests in 2010 after the government implemented unscheduled power cuts lasting up to 20 hours a day in rural areas, heavily impacting industrial production.
International Power is the single largest private investor in Pakistans electricity sector.
ADBs support for this project will reassure the developer and encourage co-financing support for future projects, which otherwise might not be forthcoming, said Takeo Koike, Senior Investment Specialist in ADBs Private Sector Operations Department.
