CHITRAL NEWS                                                                                                                                              Home page

 

 

 

 

 

 

 

 

 

Refresh to view the latest page

 

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.

 

 

 

 

 

 ---------------------------------