Feasibility studies: funding for energy projects awarded to US companies

Washington has reportedly given a clear message to Islamabad that it is going to extend funding for feasibility studies for those energy sector projects which will be awarded to the US companies, well informed sources told Business Recorder.
This was conveyed by the President, Energy Markets Group (EMG), Ahmad Ghamarian at a recent meeting with the top government officials including Water and Power Development Authority (Wapda) Chairman Shakil Durrani.
Ghamarian, maintained that M/s EMG has been hired by the United States Trade Development Agency (USTDA) for energy sector projects in Pakistan. He said the USTDA will allocate funds for identified energy sector projects for bankable feasibility studies in Pakistan.
"EMG will recommend to USTDA, the energy sector projects for which feasibility studies are required. The project may include hydel, biogas, wind, solar energy and transmission. The Terms of Reference (ToR) for the studies of these projects will be prepared and then Request for Proposals (RFP) for bidding will be formulated for which only the US companies can participate," sources quoted Ghamarian as conveying to the participants.
The funds will be arranged by the USTDA. The concerned departments will select the consultants/contractors and set the benchmarks. On achievement of those benchmarks, USTDA will arrange payment. John Simmons, Commercial Counsel of the US embassy in Islamabad, revealed that the US embassy through Commercial Counsel co-ordinates and facilitates the American companies for trade development in Pakistan. He further stated that the US will be willing to send the delegation of trade development agency to identify projects for which further studies are required and both countries can work together for development of those projects.
Dr Samar Mubarakmand, Member Science and Technology, Planning Commission, who was also present in the meeting, briefed the participants that the exploratory drilling data of Thar coal area has revealed that the coal of Thar area is covered with rock like a rook, so gasification of Thar coal will remain entrapped. According to him, there is no chance of escapage of gases, so underground coal gasification will be best option for power generation at Thar. The underground coal gasification is the most important clean coal technology of the future, which will also substitute for deep coal mining for power generation. It can further be converted into liquid diesel, as the same is practised in other developed countries.
"The US should provide financial assistance for technology for power generation, conversion of Thar coal into liquid diesel and execution of projects," sources quoted Dr Mubarakmand as saying. He further stated that the study on coal gasification for power generation has already started as Thar coal can play a pivotal role in overcoming the energy crisis both in long term and short term.
Mubarakmand claimed that the World Bank and Asian Development Bank are keen to provide funds for this purpose. President EMG, showed interest in the project and requested to provide further details/information about the project for further consideration. He stated that at the moment capital investment is required which will further be considered for developing a mechanism for arrangement of funds.