DUSHANBE, August 2, 2008, Asia-Plus — On July 31, the World Bank Board of Executive Directors approved a US$2.5 million grant in additional financing for the Pamir Private Power Project, press release issued by the World Bank said.
The additional financing will help cover the costs associated with a financing gap caused by the unexpected need to restore and repair equipment and facilities damaged by flooding at the Pamir 1 Hydro Power Plant (HPP) in the Gorno Badakhshan Autonomous Region (GBAO) of Tajikistan. The additional financing will enable the project company Pamir Energy (PEC) to complete the original project scope by focusing on rehabilitation of plant infrastructure and provision of parts and equipment to ensure the plant’s long-term sustained operation and prevent further accidents.
Pamir 1 HPP accounts for 75% of the capacity in the main grid system of GBAO, which is operated by Pamir Energy (PEC), a fully privately owned special purpose company, under a 25-year concession given by the Government of Tajikistan to operate and further develop all existing electricity generation, transmission, and distribution facilities in GBAO. The concession was developed under the Pamir Private Power Project (PPPP), which is a successful public-private partnership between the Government, the Aga Khan Fund for Economic Development (AWED), as the main private sponsor, and the IFC.
The Project, at a total cost of US$26 million, combines public-private partnership with a subsidy from the Swiss Government to ensure affordable tariffs paid by households. The Project objective is to improve the reliability and enhance the quantity of electricity supply in the Gorno Badakhshan Autonomous Oblast (GBAO) in a financially, environmentally and socially sustainable way with the help of the private sector.
“Immediately after the flooding in February 2007 at the Pamir Hydropower Plant, the World Bank, jointly with IFC, sent a team to help assess damage, design a recovery plan and look into financing needs. The additional financing approved today will help meet the financial gap in the project and put the Pamir Hydropower Plant back on sustainable footing ”, said Chiara Bronchi, the World bank Country Manager for Tajikistan.
The World Bank’s mission in Tajikistan is to promote economic growth, reduce poverty, and encourage a better quality of life. The country became a member of the World Bank on June 4, 1993. The World Bank’s overall mission in Tajikistan is to promote economic growth, reduce poverty, and encourage a better quality of life. The World Bank plays a role as the catalyst of change and an institution bringing global experience to developing countries.
