Pakistan, IDB likely to finalise 3-year financial package worth $577m

June 10, 2009

ISLAMABAD: Pakistan and Islamic Development Bank (IDB) are expected to finalise the modalities of three years rolling financing plan worth $577 million for the year 2010-2012 today (Tuesday), sources told Daily Times here on Monday.

In this regard the country mission of Islamic Development Bank will hold meeting with high officials of Pakistan. The meeting is likely to finalise the modalities of the financing mode and their proper implementation. The three years rolling plan includes financing of Neelum Jhelum Hydropower Project worth $360 million, NUST Development Project $57 million, Modernisation of signalling system $130 million and $30 million are for Diamer Bhasha Dam.

The sources further said that country dialogue mission of the IDB visited Pakistan in February to understand country dialogue assumed at clearly aligning the banks operation in Pakistan.

During the visit the Mission held meeting with concerned inistries/divisions/departments.

During the meeting the IDB agreed provide financing to Pakistan for National Trade Corridor in collaboration with Asian Development Bank (ADB). The IDB agreed to consider providing a loan for the Kharan and Wadhuk projects in Balochistan for an indicative amount of $15 million. The mission indicated that the bank was willing to be a part of any viable financing arrangement that desired for Diamer Bhasha Dam.

The bank informed the government that a country programming mission would visit Pakistan in second half of 2009 to firm up the projects in pipeline for the year 2010 to 2012 period and agreed on the volumes and modes of financing in live with the above understanding.

In line with a donor country programming mission of the IDB was visiting Pakistan today (Tuesday) for identifying and develop a project pipeline to be included in IDB´s three-year work program for 2010-2012 for Pakistan.

Sources claimed that basic objectives of the mission´s visit to Pakistan is to review current economic development trends in Pakistan.

During the meeting the mission will develop a pipeline of projects based on lessons learned in the implementation of IDB approved projects in Pakistan.

Apart from above project, the IDB and Pakistan will also discuss various financial assistance programmes of the bank including energy, transport and education. In energy sector, the IDB is likely to support Pakistan in various projects including Neelum Jehlum Hydropower project, Khawar Hydropower project and renewable energy, the sources claimed.