Pakistan receives Abu Dhabi loan

Pakistan yesterday signed an agreement for a $265 million concessional loan from the Abu Dhabi Fund for Development (Adfd), Finance Minister Shaukat Aziz said.

"We signed an agreement for a $265 million facility with the Abu Dhabi Fund for Development... These are concessional grant-like facilities," Aziz told a news conference after signing the agreement.

He said the loan covered six development projects, three of which were hydro-power projects, two water and one for construction of a dam in the North West Frontier Province.

Moeen Qureshi, secretary general finance, told reporters that the interest rate on the loan was two per cent with a five-year grace period and repayment in 20 years.

The agreement was signed by Saeed Khalfan Matar Al Rumaithi, Adfd Director General and Shaukat Aziz.

A press release issued by Adfd said that the agreement was signed in consideration of the strong ties between the UAE and Pakistan, and pursuant to the instructions of His Highness Sheikh Khalifa bin Zayed Al Nahyan, Crown prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Adfd board of directors.

The Khan Khwar hydropower project has been awarded a loan of Dh146.92 million under the agreement. The project includes construction of a 30 metre high weir and an intake on the Khan Khwar river. It also includes construction of a power house.

The proceeds of the loan for this and other projects will be used to finance the foreign components of the list of goods and services.

The second loan of Dh 202.012 million is for the Duber Khwar hydropower project. The project aims at constructing 30 metre high weir and an intake on the Duber Khwar river. The water is then transferred through a tunnel of 5 km length to a power house, which will house two turbines of 65 mw each.

The third loan of Dh73.46 million is for Quetta water supply scheme. The purpose of the project is to conduct an exploration programme for new water resources by drilling 30 wells at Murdar and 25 wells at Zarghoon, to an average depth of 1,000 feet, together with construction of pipelines and storage facilities.

The project also includes a rehabilitation programme comprising the construction of waste water recyling and treatment plants as well as 100 km sewerage network in Quetta town.

The Karachi water supply scheme will receive a loan amount of Dh146.92 million. The project aims at constructing the fifth phase to bring an additional 100mgd water to Karachi city.

The Allia Khwar hydropower project will receive a loan amount of Dh220.38 million as part of the agreement.

The project's objective is to construct a 32.5 metre high weir and and intake on the Allia Khwar river and also to construct a steel lined 2,300 metre long inclined pressure tunnel and a head of 680 metres which tranfers water to the power house.

The project also includes construction of the power house housing two turbines of 60mw capacity each.

The Gomal Zam dam project will receive an amount of Dh183.65 million. The objective of the project is to construct a 133 metre high curved RCC concrete dam on the Gomal river creating a reservoir of 1.5 billion cubic metres capacity.

A diversion weir and canal network will also be constructed to provide irrigation for 66,000 hectares. The project also includes the construction of a 6.5 km long power tunnel to a power house with an installed capacity of 130 mw.