PAKISTAN

ISLAMABAD: The federal cabinet on Wednesday awarded approval to start 8 rental power projects in line with the recommendations of the Asian Development Bank (ADB).

Moreover, the cabinet rejected 5 rental projects and decided to review 6 others.

Following the meeting, Federal Minister for Water and Power Raja Pervez Ashraf said ADB had made 11 recommendations in its report, which were approved by the cabinet.

He further said that work on the approved projects would immediately get underway, which is expected to complete by June this year.

These projects will help generate 1,156 mega watts electricity, while legal aspects of 6 other projects will be reviewed.

Ashraf pointed out that these 8 projects will result in 6.1 percent increase in power tariff and this hike would have gone to 9.9 percent if all 14 projects have got the approval. He said old IPPs will be replaced by the new projects.

He said the government wants these plants to run on gas, but lack of availability in the international market has stopped the process.