Asian Development Bank to invest $40 million in Pakistan energy sector

The Asian Development Bank will spend $40 million in Pakistan to promote energy-saving light bulbs, the bank said.

Asian Development Bank to invest $40 million in Pakistan energy sector

The Asian Development Bank (ADB) will spend $40 million in Pakistan to promote energy-saving light bulbs, the bank said on Thursday, as the country struggles to ease chronic power cuts.

Pakistan is facing a shortfall of between 4,000 and 5,000 MW of power after water levels fell sharply at two major dams and is forced to cut power supplies for several hours a day, angering the public.

Under the agreement, the first tranche of the loan will be used to promote energy efficiency with the use of cost-effective compact fluorescent lamps (CFLs) projects, the bank said.

The project would help reduce power demand by 1,100 MW and ease the power cuts, said Rune Stroem, the bank's country director in Pakistan.

"Energy efficiency is a strategic priority, and is the quickest way of bridging the energy gap," he said in a statement.

Thirty million high-quality energy-saving light bulbs will be distributed free to residents nationwide, the bank said.

The ADB investment is part of $1.18 billion loan for a 10-year energy efficiency investment programme for Pakistan. Last year, the bank approved $780 million out of the multi-tranche facility.

The government announced last week measures to cut state electricity consumption by half to help reduce the power outages.

Reuters

Last Mod: 30 Nisan 2010, 08:18
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