US co to invest $1b in two Pak power projects
ISLAMABAD, Jan 27: United States company Synergics Energy Development is to invest about 1 billion dollars in two power projects in Pakistan in the next six years, its chairman said here, reports AFP.
For all latest news, follow The Daily Star's Google News channel. Wayne Rogers told a news conference the company would set up a 600 megawatt hydro-electric power project in Kashmir costing 850 million dollars and an 84 megawatt project costing 120 million dollars in northwest Pakistan.
He said work on the project in Pakistani Kashmir was underway and was scheduled for completion in 2006. The feasibility study for the other project had been completed.
The two projects will be constructed on a built-operate-and transfer (BOT) basis and handed over to the government after 25 years in operation, he said.
Synergics would explore other hydro-electric power projects in Pakistan and would be a leader in restoring investors confidence in the country, he added.
Rogers said his company was committed to a long-term partnership with Pakistan in the hydro-electric power sector and was encouraged by the revival of lending to Pakistan by the International Monetary Fund and the World Bank.
The institutions this month restored loans to Pakistan which were suspended after it conducted a series of nuclear tests in May.
The Synergics announcement followed indications of a thaw in Pakistan's year-long power tariff row with about 20 Independent Power Producers (IPPs), including US and Japanese companies, which had set up thermal power projects here.
The dispute erupted early last year as the government, complaining of high tariffs, said the deals were struck correctly during the rule of former Premier Benazir Bhutto.
The authorities have said negotiations with the IPPs have made headway, with several agreeing to reduce rates, and they insist the issue is in the process of being settled.
The row with IPPs drew international protests and adversely affected investor confidence. Pakistan was repeatedly urged by the IMF and the World Bank to resolve the issue.
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