USAID Energy Policy Project - II Quarterly Progress Report

The project aims to support the joint goals of the U.S. Government (USG) and the Government of Pakistan (GOP) by working with selected energy infrastructure and facilitating GOP reform efforts with technical assistance and new technology. The EPP is structured into three interrelated sets of program activities: Component 1 - Monitoring and Support of Project Implementation, Component 2 - Advice and Support of Energy Sector Policy Reform, and Component 3 - New Projects, Planning and Development. Component 1 provides monitoring and implementation support for six signature energy projects announced by Secretary of State Hillary Clinton, including the rehabilitation of three thermal power plants (Muzaffargarh, Guddu, and Jamshoro) and one hydropower plant (Tarbela Dam), as well as the completion of two new multipurpose dams (Gomal Zam Dam and Satpara Dam). As of December 2012, a total of 559 MW have been added to Pakistan's electricity grid, exceeding the planned MW gains per FARA for the reporting quarter. The EPP is working closely with the GOP implementing partners, GENCOs, and WAPDA, to support implementation of a broad range of projects' activities, including dedicated technical experts, regular monitoring visits, verification of deliverables and milestones, and certification of compliance with construction specifications and technical standards. Component 2 - Advice and Support of Energy Sector Policy Reform - is supporting generation and transmission-related studies and policy reform activities assigned by USAID, including developing GENCO and NTDC business plans, developing policies and procedures for the National Power Control Center, and providing technical expertise on the LNG import program. Component 2 also supports policy reform and provides advisory services at the Ministry of Water and Power (MWP), Planning Commission (Energy Wing), Ministry of Finance (MOF), Ministry of Petroleum and Natural Resources (MPNR). Component 3 - New Projects, Planning and Development - conducts and prepares due diligence reports on new projects being considered for USG support, such as Kurram Tangi, Warsak, and the Mangla Dam Project, to provide detailed information on the projects, reduce USG risks, and set a basis for creating Project Implementation Agreements for selected projects. The EPP is providing technical assistance and new technology to support the GOP's institutional framework for the energy sector, and is working to strengthen the power sector through structural reforms and improved corporate governance. The project is expected to add more than 863 MW to Pakistan's generation capacity, with a total USG funding of $136.731 million.