WB to provide Rs.1.9b for Tarbela power project
April 2nd, 2012 | Technology Times | No Comments
STAFF REPORT KHI: The World Bank has approved to provide $1.09 billion loan to Pakistan for enhancing supply of electricity from the Tarbela Hydropower Project and improving the irrigation methods for the farming community.
According to details,$840 million of the total loan amount would be utilized for capacity extension of the Tarbela Hydro Power Project by 1,410 MW, which would shift the power generation from expensive fuel oil to cheaper hydropower technology. Whereas, the remaining amount would be utilized to improve the irrigation system on 120,000 acres of land in Punjab and would enable conservation of water from wastage while increasing crop yields.
A government told this scribe that the project extension includes a fixed spread loan of $400 million to be disbursed from the International Bank of Reconstruction and Development (IBRD) for a period of 21 years including a grace period of 6 years. While the remaining loan of $440 million Tarbela Project and $250 million for Irrigation and Productivity improvement project would be disbursed from the IDA, a concessionary lending arm of the World Bank, for a period of 25 years with a 5-year grace period.
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