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U.S. Releases New Funds for Pakistani Energy Projects

Contact: Mark Stroh - For Immediate Release - Spokesperson 97/2012 - August 3, 2012 0308-555-0591

Islamabad, August 3, 2012 The U.S. Congress has released $280 million in new U.S. assistance to support Pakistan’s energy sector. The funds will support improvements to Mangla Dam and infrastructure support and due diligence work on the Kurram Tangi Dam project. This is the latest example of the United States’ long-term and enduring support for Pakistan’s energy sector and for the people of Pakistan.

Relieving Pakistan’s energy crisis is a top priority for our civilian assistance program. The U.S. approach consists of high-impact projects aimed at increasing Pakistan’s energy resources and helping power sector institutions more effectively meet the country’s energy needs.

The United States funds large-scale infrastructure efforts that, by 2013, are expected to add 900 megawatts to the national power grid, enough energy to power two million households and businesses.

Our institutional support ranges from improving the governance of the power sector to strengthening the performance of Pakistan’s power distribution companies. We are helping develop new policies to rationalize pricing, reduce subsidies, increase revenues, and improve the distribution of energy resources. We also work with private sector entities and civil society organizations to enhance their role in decision-making and advocacy.

Ongoing projects supported by the United States include the Gomal Zam Dam, which will generate 17.4 megawatts of hydroelectric power – enough to supply electricity to 30,000 households – and irrigate almost 200,000 acres of land worked by 30,000 farmers; the Satpara Dam, which will provide 17.7 megawatts of power to the local grid – enough to supply electricity to 30,000 households – and mitigate flooding, provide water for irrigation, and serve as a significant source of drinking water; the Muzzafargarh Power Station, which will increase the generation capacity of the power station by 475 megawatts, enough power to supply electricity to about 680,000 households; the Jamshoro Power Station project, which will enable the station to restore at least 150 megawatts of power generation capacity, enough power to supply electricity to about 215,000 households; and the Tarbela Dam modernization project, which will add 128 megawatts in power generation capacity.

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