US to give $51 mn to Pak to upgrade thermal plants

The US has agreed to provide $51 million to Pakistan to upgrade its three thermal plants in an effort to help it overcome its acute power shortage, a day after Islamabad failed to secure a clear commitment from the Obama administration for a civil nuclear deal.

The upgrading of the plants, commissioned by the Pakistani companies, will restore approximately 305 MW of lost power generation capacity and bring relief to the people of Pakistan over the course of the next one year.

The three thermal power plants are located at Jamshoro, Muzaffargarh and Guddu.

The US Agency for International Development (USAID) will provide USD 51 million in assistance for this effort. 

These projects are part of the first phase of the signature energy programme for Pakistan announced by US secretary of state Hillary Clinton during her visit to Islamabad in October 2009, Pakistan's state-run APP news agency reported.

Pakistan's secretary for water and power Shahid Rafi and USAID Administrator Rajiv Shah signed the agreements here yesterday.

Rafi said that upgrading of the power plants is the quickest way to overcome power shortage as collectively they will generate around 400 MW of additional electricity. 

On the occasion, US Special Representative for Afghanistan and Pakistan, Richard Holbrooke, said the Obama administration is working in consultation with Pakistan on assisting projects that bring qualitative difference in the lives of ordinary Pakistanis.

The signing of the agreements on the three thermal plants came a day after Pakistan failed to get a clear commitment from the US on securing a civilian nuclear deal which it had been seeking from Washington.

On the opening day of the upgraded strategic dialogue between the two countries here on Wednesday, secretary of state Hillary Clinton merely said the US would look into whatever issues the Pakistani delegation has raised including the nuclear deal.