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MOU signed for implementation of $19.2 million plan
for setting up of mini-hydel power plants in
district Chitral
ONLINE
CHITRAL, 22 May 09: MOU signed for
implementation of $19.2 million plan for setting up
of mini-hydel power plants in district Chitral
ISLAMABAD : United Nation’s Global Environment
Facility (GEF) on Thursday signed a project document
with Alternative Energy Development Board (AEDB) and
Economic Affairs Division (EAD) for the
implementation of $19.2 million plan for setting up
of mini-hydel power plants in district Chitral.
The agreement for the project titled ’Productive
Uses of Renewable Energy in Chitral district
(PURE-Chitral)’ was signed by Ms. Mikiko Tanaka,
Deputy Country Director UNDP, on behalf of UNDP; Mr.
Arif Alauddin, CEO AEDB; and Mr. Muhammad Asif,
joint Secretary (UN/China) for EAD.
The signing ceremony was witnessed by Federal
Minister Water and Power / Chairman AEDB Raja Pervez
Ashraf.
The signing of the project took the country further
closer towards greater and faster exploitation of
its vast hydro energy resource by promoting
micro/mini-hydel power projects.
Under this project 103 micro/mini-hydro power plants
(MHPs) would be installed with the total capacity of
15 MW.
Pakistan has great potential of
micro/mini-hydro-power development in northern parts
of the country including NWFP, AJK and northern
areas.
Federal Minister Water and Power speaking on this
occasion said: "Of the estimated potential of 1,000
MW for small-scale hydro power available in the
northern mountainous regions less than 1% has been
developed, because of a number of barriers that
hamper the development of MHP".
"Rural electrification has always been a central
objective for power sector reforms in Pakistan and
about 130,000 villages will be supplied by
decentralized options, of which mini and micro hydro
power (MHP) can provide sufficient capacity to
provide power for social and productive uses to
initiate rural economic development," he added.
Ms. Tanaka said, "In partnership With AKRSP, PPAF
and AEDB, we are hopeful that the planned activities
would lead to promotion of clean and manageable
energy resources - thereby demonstrating climate
change mitigation through local actions. Furthermore
this project fits in the framework of UN joint
Programme on environment which has targeted
interventions on access to sustainable energy
sources,".
The objective of the project is to harness the
micro/mini-hydel energy resource at selected sites
in Chitral district and promote productive use of
renewable energy. The project will create new local
jobs and sources of income while directly mitigating
some 461,465 tons CO2 equivalent in the first seven
years and 1,890,868 tons CO2 equivalent over 22
years. The committed funds for the project totaling
US$19,231,000 include: GEF: US$ 950,000, UNDP: US$
325,000, PPAF: US$ 6,000,000, PCRET: US$ 3,330,000,
Private Sector: US$ 2,145,000, Commercial Sector:
US$ 3,275,000 and Community Investment: US$
3,206,000. GEF support will play a vital role in
strengthening local capacity to manage and operate
MHPs; creating sustainable business models for MHPs
notably by setting an appropriate tariff structure
that covers operation and management expenses;
training community members to run cottage industries
and other productive uses; helping to set up a local
entity at the district level to promote and manage
off-grid electricity options; and developing and
proposing regulatory and policy instruments to
promote decentralized energy options.
Together, these measures will help to create an
enabling environment that will ensure that
investments in micro/mini-hydropower in northern
Pakistan are sustained over the medium and
long-term. "Mini/mini hydel projects have the
potential to provide energy in remote and hilly
areas where extension of grid system is
uneconomical," said Mr. Arif Alauddin, Chief
Executive AEDB. Moreover he said: "the vast
potential for micro/mini hydel power plants should
be harnessed for power self-sufficiency at the grass
root level, and also to avoid high transmission loss
and costs".
The project would be executed by AEDB. A project
Steering Committee (PSC) comprising UNDP, AEDB, GTZ,
Ministry of Environment, Ministry of Irrigation, and
Ministry of Water and Power, would be established
for supervising the project implementation and
providing guidance.
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