Official says authority to take loan from federal government to pay its part of Rs 1.6 billion
ISLAMABAD: The Capital Development Authority (CDA) plans to acquire a loan for execution of the long-pending Light Emitting Diodes (LED) project to replace the existing street lights system for energy saving purposes.
Rs 6.5 billion are needed for the implementation of the LED lights project.
The official said the Authority is planning to launch the project by taking a Cash Development Loan (CDL) after consulting the Ministry of Finance.
A firm named Oslo has shown interest in providing loan amounting to Rs 4.9 billion to CDA to launch the project, while the authority would take another loan from the federal government to pay its part of Rs 1.6 billion, the official said.
In a recently held CDA board meeting, a three-member committee headed by Planning Member, has been asked to compile, once again, a detailed report on the project and present it to the board in the upcoming meeting.
The official said CDA is exploring the options to conserve electricity and decrease the huge cost incurred on operating streetlights in the federal capital.
Replacement of the existing conventional lights with LED lights would save 52 percent of the Authoritie’s energy requirements, which will reduce a load of 8.32 MW on the national grid. Earlier, the CDA chairman, engineer Farkhand Iqbal said that the current energy shortage in the country either increasing the energy production or reduce consumption.
CDA is managing around 65,000 conventional streetlights in Islamabad, adding a load of 16MW on the national grid and incurring an annual expense of over Rs 1.2 billion, which is growing every year.
Iqbal said that as per figures, electricity cost has increased by 29 percent over the last three years and the trend is expected to continue.
The chairman has said that the life of proposed LED lights is more than 20 years and the project, if implemented, will reduce by 52 percent the Authority’s energy requirement every year, which will reduce a load of 8.32MW on the national grid and will save about 42,263MW per annum. The electricity savings and savings from repairs and maintenance on existing lighting infrastructure, of first 10 years will be used to repay the investment.