World Bank approves $400 million loan for Tarbela upgrade project

WASHINGTON, D.C. 3/23/12 (PennWell) — The International Bank for Reconstruction and Development has approved a US$400 million fixed spread loan for use on Pakistan’s Tarbela IV Extension hydropower project.

The loan has a maturity of 21 years — including a grace period of six years — and is in addition to an earlier $440 million loan granted by the World Bank’s concessionary lending arm, International Development Association (IDA).

“The Tarbela IV hydropower project will enhance Pakistan’s energy security by adding low-carbon, least-cost and renewable hydel power to its energy portfolio,” says Rachid Benmessaoud, World Bank country director for Pakistan. “The direct beneficiaries will be millions of energy users, including industry, households and farmers who would get more electricity at a lower cost and suffer fewer blackouts.”

Tarbela Dam is on the Indus River about 60 km northwest of Islamabad and has an installed capacity of 3,478 MW. The Tarbela IV extension project seeks to add an additional 1,410 MW of capacity by constructing a new powerhouse on an already constructed tunnel at the plant. The facility is part of the Water and Power Development Authority’s plan to improve Pakistan’s overall hydroelectric output.

The project received financial assistance from the U.S. Agency for International Development (USAID) in March 2011.

Previous articleBids sought to refurbish North Korea’s 600-kW Myongchon
Next articleIndonesian utility to construct three new hydropower plants

World Bank approves loan for Jinnah Barrage rehab, other improvements

The World Bank has approved a credit worth US $146 million for the second phase of a project to rehabilitate and modernize the Jinnah Barrage on the Indus River and to improve irrigation and water management.

The Punjab Barrages Improvement Phase II Project aims to strengthen and modernize Jinnah Barrage and affiliated works to enable reliable and uninterrupted supply of water for more than 2.1 million acres of farmland, benefitting about 600,000 families for irrigation and domestic water users.

World Bank Lead Water Resources Specialist and Project Team Leader Masood Ahmad said: “The development and management of water resources of the Indus Basin is a huge challenge, requiring very high levels of administrative engineering and scientific capability. While there has been progress, the current irrigation and drainage system suffers from deteriorating infrastructure and weak governance. To reduce volatility to growth, Bank support will include rehabilitation of barrages and continued capacity development at the regional and federal level for managing water resources.”

The World Bank recently approved $780 million to fund infrastructure projects in India, including $350 million for dam improvements, wire services reported.

The funding will comprise $350 million for improving 220 dams and $430 million for improving Mumbai’s suburban railway, according to wire reports.

For more hydropower news and information, click here