ISLAMABAD: Pakistan has formally requested the USA to provide $7.5 billion for 40 development projects, including the Diamer Bhasha Dam, under the Kerry Lugar Law (KLL). The funding for this crucial hydropower project may be made part of financing plan for the next financial year 2011-12, it has been learnt.
Initially, Islamabad made a request for 39 development projects with estimated cost of over $12 billion and Bhasha Dam was not part of that wish list. “But recently, Pakistan made a fresh request to include construction of this mega project as part of $7.5 billion funding coming over the next five years in shape of KLL,” one of the top officials of economic team revealed while talking to a select group of journalists here on Thursday.
Dwelling upon the lingering controversy over Raymond Davis episode that harbours the potential of derailing bilateral ties between the two countries, the official confided that John Kerry during his latest visit to Pakistan asked the concerned authorities about specific measures required to be taken by Washington to end this confrontational atmosphere between the two countries.
He said that Pakistan forwarded 40 projects of four major areas including energy, food security, human resource development and others.“If USA agrees to provide much less amount even $5 to $10 million for construction of $11.5 billion Bhasha dam it will help to lure other multilateral and bilateral donors in a great way,” the official added. He said that the Asian Development Bank (ADB) had asked the government to evolve consensus on Diamer Bhasha Dam among the federal government, four provincial governments and Northern Areas and also made payments for land acquisition. The Council of Common Interest has granted its approval for Bhasha dam and payment of compensation for land acquisition is also underway, he maintained.
When asked about the slow release of funds under KLL, the official said that the process of donor funded projects took more time as completion of mechanism starting from opening up assignment account, arrangement of counterpart funds in Pak rupee and proposal for request (RFP), bidding and many other hectic requirements consumed a lot of time. “It is an achievement that USA has agreed to provide around $874 to $900 million through government’s sponsored agencies and ministries concerned out of total $1.5 billion per annum under KLL,” he further said.
He said that USA had provided $180 million during the last financial year that included $75 million for Benazir Income Support Programme (BISP), $45 million for HEC and $65 million for Malakand IDPs. During the ongoing financial year, USA has provided $60 million for Post Flood Recovery and was going to provide $190 million for Citizen Damage Compensation of flood affected areas. Pakistan and USA have also assigned $40 million for Gomal Zam dam and $26 million for Satpara dam and these funds are expected to be released soon. He said that the government had estimated to receive around $4 billion during the current fiscal year but it is likely to face a shortfall owing to Islamabad’s inability to arrange counterpart funding in the wake of financial constraints.
Initially, Islamabad made a request for 39 development projects with estimated cost of over $12 billion and Bhasha Dam was not part of that wish list. “But recently, Pakistan made a fresh request to include construction of this mega project as part of $7.5 billion funding coming over the next five years in shape of KLL,” one of the top officials of economic team revealed while talking to a select group of journalists here on Thursday.
Dwelling upon the lingering controversy over Raymond Davis episode that harbours the potential of derailing bilateral ties between the two countries, the official confided that John Kerry during his latest visit to Pakistan asked the concerned authorities about specific measures required to be taken by Washington to end this confrontational atmosphere between the two countries.
He said that Pakistan forwarded 40 projects of four major areas including energy, food security, human resource development and others.“If USA agrees to provide much less amount even $5 to $10 million for construction of $11.5 billion Bhasha dam it will help to lure other multilateral and bilateral donors in a great way,” the official added. He said that the Asian Development Bank (ADB) had asked the government to evolve consensus on Diamer Bhasha Dam among the federal government, four provincial governments and Northern Areas and also made payments for land acquisition. The Council of Common Interest has granted its approval for Bhasha dam and payment of compensation for land acquisition is also underway, he maintained.
When asked about the slow release of funds under KLL, the official said that the process of donor funded projects took more time as completion of mechanism starting from opening up assignment account, arrangement of counterpart funds in Pak rupee and proposal for request (RFP), bidding and many other hectic requirements consumed a lot of time. “It is an achievement that USA has agreed to provide around $874 to $900 million through government’s sponsored agencies and ministries concerned out of total $1.5 billion per annum under KLL,” he further said.
He said that USA had provided $180 million during the last financial year that included $75 million for Benazir Income Support Programme (BISP), $45 million for HEC and $65 million for Malakand IDPs. During the ongoing financial year, USA has provided $60 million for Post Flood Recovery and was going to provide $190 million for Citizen Damage Compensation of flood affected areas. Pakistan and USA have also assigned $40 million for Gomal Zam dam and $26 million for Satpara dam and these funds are expected to be released soon. He said that the government had estimated to receive around $4 billion during the current fiscal year but it is likely to face a shortfall owing to Islamabad’s inability to arrange counterpart funding in the wake of financial constraints.
Source: The News
