ISLAMABAD (July 29 2010): The government is in the process of identifying about 2 billion dollar projects for energy sector and seek funding under the Kerry Lugar Bill, an official of Finance Ministry revealed during an informal discussion with the media.

The high up of Finance Ministry who requested anonymity said that disbursement under KLB was 201 million dollars during 2009-10 fiscal year out of the approved and expected 1.5 billion dollars. This was largely because of failure to identify projects for funding and the complicated procedure for disbursement which has now been streamlined. We are hopeful that 749 million dollars under the KLB might be disbursed prior to the end of calendar year, December 2010.

The procedure for identification of projects, co-ordination with donors and overall overseeing has been streamlined by involving only three ministries/divisions: Planning Commission (PC) would identify the projects; EAD would co-ordinate with donors while Ministry of Finance will oversee the procedure. The Interior Ministry, Foreign Office, and other ministries, who were directly dealing with donors before, have now been directed not to do so and instead submit their proposal, if any, to the Planning Commission.

"Our priority is to identify 2 billion dollar energy sector projects for funding in the next five years under KLB, 2 billion dollars for food security and 1 billion dollars each for social sector development and for affected areas of Khyber Pukhtoonkhwa and Balochistan" the source stated adding that 500 million dollars would be identified for private sector growth.

It has also been decided that only those projects would be submitted for funding under KLB, which are at an advanced stage of completion to ensure early disbursement. For this purpose some of the projects might also be included from the Public Sector Development (PSDP), which are at the final stage of completion. Upraising of Mangla Dam and construction of houses in Malakand Division have already been identified for funding under KLB. Sources said that 195 million dollar from the KLB would also be used for budgetary support in 2010-11.

About release of Coalition Support Fund (CSF), it was revealed that so far Pakistan has received 1.3 billion dollars against the claims of 2 billion dollars. Audit related issues of CSF have been resolved and the US has assured monthly or by-monthly reimbursement of CSF claims with the intent of reconciling claims and disbursements. In addition special teams would be set up to look into those claims which are not reconciled.

Copyright Business Recorder, 2010