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USA grant for LPG Transport Fuel Conversion Project.

ISLAMABAD, September 15, 2010 (Balochistan Times) -- A Grant Agreement Signing Ceremony was held in the Ministry of Environment between Government of the United States of America, acting through the U.S. Trade and Development Agency (USTDA) and National Energy Conservation Centre, Ministry of Environment for Liquefied Petroleum Gas Transport Fuel Conversion Project in Pakistan here Wednesday. Ceremony was held in the presence of Hameed Ullah Jan Afridi, Federal Minister for Environment, Muhammad Javed Malik, Secretary Environment, Dr. Sarwar Saqib, Chief ENERCON, Commercial Counsellor of US Mission Mr.John Simmons and concerned officers and officials of the Ministry of Environment, Economic Affairs Division, USTDA and U.S. Embassy. The grant agreement was executed and signed by Mr. Stephen C. Engelken, Deputy Chief of Mission and Mr. Faridullah Khan, Managing Director (ENERCON) on behalf of the Governments of USA and Pakistan, respectively. At the time of serious energy crisis prevailing in Pakistan, Government of the United States of America has agreed to provide a grant of US$ 0.482 million to ENERCON, the National Energy Conservation Centre under the Ministry of Environment for the Liquefied Petroleum Gas Transport Fuel Conversion (LPG-TFC) project. Mr. Stephen C. Engelken, Deputy Chief of Mission in the ceremony expressed the commitment of the Government of USA for cooperation and collaboration with the Government of Pakistan in all fields of economy especially in trade and development. He explained that ENERCON will utilize the grant funds, on behalf of the Government of Pakistan to implement a project on LPG Transport Fuel Conversion in the country, which is expected to be completed by December 2011. It was further elaborated that a detailed and comprehensive feasibility study under this project will produce useful information and data with necessary analysis required to consider adopting liquefied petroleum gas (LPG) as a fuel source for land transportation operations in Pakistan. Supply and demand forecast and assessments, including supply from Persian Gulf, among other sources, shall also be carried out. The technical and operational specifications required to adopting LPG as a transportation fuel, including any infrastructure requirements, as well as the economic, financial and legal considerations will be worked out for the implementation of the project. The Federal Minister for Environment, Mr. Hameed Ullah Jan Afridi, while addressing at the occasion highlighted that under the LPG-TFC project, the operational requirements to convert Karachi, Hyderabad, Multan, Lahore, Faisalabad, Peshawar and Islamabad/Rawalpindi bus fleets to LPG will also be assessed in detail. A comprehensive analysis will be carried out demonstrating the viability of LPG as an alternative fuel to CNG and diesel and operational requirements needed to adopt LPG fuelled bus operations in these cities. He explained that based on detailed economic and financial analysis, the role of private capital and investment for implementation of the project will be determined to supply a bus fleet with LPG equipment on a commercial versus financial lease basis. He further added that the options shall be discussed with representatives of the World Bank, Asian Development Bank, and at least one other international financial institution that has made significant investments in Pakistan, before formulating final recommendations. The Secretary Environment, Mr. Muhammad Javed Malik pointed out that a preliminary review of the Projects anticipated impact on the environment shall be conducted, with reference to all pertinent national, provincial and/or local requirements. The review shall identify potential negative and positive impacts, discuss the extent to which they can be mitigated, and develop plans for an environmental impact assessment as may be required under the rules and regulations in force in Pakistan, as and when the Project moves forward to the implementation stage. Moreover, necessary legal and institutional framework changes, as well as barriers to operation and remedies including regulatory requirements to minimize risk for potential investors shall be worked out and analyzed It was brought out by Mr. Faridullah Khan, Managing Director ENERCON that the developmental impacts related to Project implementation with focus on key factors such as infrastructure, human capacity building, technology transfer/productivity improvement, and market-oriented reform, will also be clearly spelled out, which are intended to provide the decision makers and stakeholders with a broader view of the Projects potential effects on Pakistan. The goodwill gesture of the Government of USA in extending the grant funds for the LPG-TFC Project was appreciated by the Minister which is seen as need of the hour especially in the days when the country is facing severe energy shortages and opportunities for alternative fuels need to be explored with the objectives of not only the energy efficiency & conservation but also from the environment perspective.

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Publication:Balochistan Times (Baluchistan Province, Pakistan)
Geographic Code:9PAKI
Date:Sep 15, 2010
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