Energy and water in Pakistan and Uzbekistan


Deep development relationships help strengthen essential industry sectors

akistan and Uzbekistan are two developing countries with long links to the OPEC Fund (see boxouts). Recently, the organization signed separate public sector loan agreements with both countries to help strengthen their energy and water and sanitation sectors, respectively. A US$72 million loan to Pakistan will help fund the ‘Jamshoro Power Project’, which involves the construction of two 600 MW-capacity power plants to help alleviate energy shortages and diversify the energy mix in Pakistan’s Sindh Province – populated by nearly 48 million people. Co-financiers include the Asian Development Bank, the Islamic Development Bank, the Kuwait Fund for Arab Economic Development, the Saudi Fund for Development and the government of Pakistan. Uzbekistan’s US$53.96 million loan will co- finance the ‘Improvement of Water Supply in Yangikurgan District and the City of Namangan

Project’. Works will include the replacement and rebuilding of water supply infrastructure for approximately 185,000 people. The project is co-financed by the government of Uzbekistan. OPEC Fund Director-General Dr Abdulhamid

Alkhalifa signed both agreements, totaling close to US$126 million, on behalf of the organization. Mansoor Ahmad Khan, Ambassador of Pakistan, and Sherzod Asadov, Ambassador of Uzbekistan, countersigned for their respective countries. Commenting on the loans, Dr Alkhalifa said:

“We are dedicated to improving people’s lives by providing public, private, and trade sector financing, as well as grants, to support sustainable social and economic advancement. Our efforts strengthen infrastructure and human capacity across essential fields such as energy and water and sanitation in developing countries like Pakistan and Uzbekistan – as well as inter-related sectors such as transportation, health and education.

OPEC Fund Director-General

Dr Abdulhamid Alkhalifa with Sherzod Asadov (top), Ambassador of Uzbekistan, and

Mansoor Ahmad Khan (bottom), Ambassador of Pakistan, who countersigned agreements for their respective countries.

“Ultimately, the OPEC Fund’s work supports

our partner countries in achieving their development priorities. I would like to thank Pakistan and Uzbekistan – and all our developing country partners – for the strong relationships we have built over the years in the name of socio-economic progress.”

THE OPEC FUND AND PAKISTAN The partnership between the OPEC Fund and Pakistan dates back to the

institution’s establishment in 1976. The country has benefited from all of the OPEC Fund’s finance windows (public sector, private sector and trade finance, and grants). Since 1978, the OPEC Fund has extended a number of loans to help strengthen Pakistan’s energy sector, which include:


• Two loans totaling US$81 million to support construction of a 969 MW power plant in the Muzaffarabd district, populated by around 1.5 million people (Neelum Jhelum Hydropower Plant Project).

• Two loans totaling US$30 million to build a hydropower plant on the Golan Gol River in the North Western Frontier Province (Golan Gol Hydropower projects).

• Two loans totaling US$45 million to meet energy demands for agriculture and industry (Tarbela Hydropower projects).

• Two loans totaling US$15.7 million to help address power shortages in northern Pakistan (Pipri Thermal Power projects).


• US$13 million to Engro Energy Limited to build a 217 MW gas-fired green-field power plant in the Punjab province.

• Two loans of US$22.5 million to Fauji Wind Pakistan for the construction and running of two wind power farms (50 MW each) in the Sindh Province


THE OPEC FUND AND UZBEKISTAN The OPEC Fund’s 20-year partnership with Uzbekistan has included public and


private sector financing for a variety of development operations across various sectors. Prior OPEC Fund public sector support to the country’s water and sanitation sector includes:

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• US$16.25 million to construct and repair water infrastructure in the Kashkardaya region to benefit circa 110,000 people (Rehabilitation and Construction of Water Network in the Cities of Kasan and Mubarak and Rural Affiliate project). • US$11 million to construct and upgrade infrastructure to bring drinking water to the regional center in Koshrabad and 77

surrounding settlements – benefiting circa 68,000 people (Improving Drinking Water Supply in Rural Areas of Koshrabad District of Samarkand Region project).

• US$12 million to build a pumping station in the Bukhara Province in southwest Uzbekistan to boost food security and incomes for around 40,000 people (Kuyu Mazar Pumping Station project).

“I would like to thank Pakistan and Uzbekistan for the strong relationships we have built

over the years.” OPEC Fund

Director-General Dr Abdulhamid Alkhalifa

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