The US to spend 6.8 billion in 55 projects in Pakistan

PAKISTAN, ISLAMABAD : Pakistan may submit more than 55 projects including five energy projects costing $ 6.8 billion to United States (US) to be financed under Kerry Lugar Act.

According to details US will extend $7.5 billion aid package of the Kerry-Lugar Act during the period from 2010 to 2014.Sources in EAD revealed that US wanted to extend aid under Kerry Lugar Act in project mode. “EAD has finalized a list of more than 55 projects of different sectors including agriculture, energy, health, communication and governance to negotiate with US government for financing,” sources maintained.

In Energy sector, EAD has finalized five projects costing $ 6.8 billion which include installation of additional power plant with power generation capacity of 300-400 MW at Kot Adu, Installation of Combined Cycle Plant with 350 MW power generation capacity, Development of Power Meters project and Bunji Hydropower Project.

According to sources, the big ‘Bunji hydropower Project’ with an installed capacity of 7100 megawatt is in doldrums due to lack of funds as the government has spent only Rs 228.404 million in the current fiscal year 2009-10. Detailed design and tender documents would be completed in August 2010. The PC-II for feasibility study, detailed engineering design and tender document was approved in the Executive Committee of the National Economic Council (ECNEC) meeting held on December 14, 2005.

Under the projections of US assistance for 2010-14 under Kerry-Lugar Act, out of a total $7.5 billion aid, US will provide $2 billion to promote agriculture in the country; $1 billion as support for permanent solution to Pakistan’s energy crisis. Around $2 billion would be spent on civil liberties, political rights, voice and accountability, government effectiveness, rule of law and control over corruption. Approximately $500 million would be spent on immediate post-crisis and other humanitarian assistance and $1.5 billion on increased access to quality of education and health services in Pakistan.

Under the Strategic Objectives Grant Agreements (SOGA), USAID and government of Pakistan have already signed six agreements amounting to $478.5 million on September 30, 2009. These programmes included an education sector reforms program worth $107 million, governance program worth $32 million, economic growth program worth $124 million, health and population welfare program worth $50.1 million and FATA development assistance at $115.2 million.