The United States and Pakistan signed implementation agreements to upgrade three Pakistani thermal power stations at Jamshoro, Muzaffargarh, and Guddu. The rehabilitation, commissioned by the Pakistani companies, will restore approximately 305 MW of lost power generation capacity and bring a measure of relief to the people of Pakistan over the course of the next 12 months. USAID will provide $51 million in assistance for this effort. These projects are part of the first phase of the signature energy program for Pakistan announced by U.S. Secretary of State Hillary Clinton during her visit to Pakistan in October 2009. Secretary Water and Power Shahid Rafi and Dr. Rajiv Shah, Administrator, USAID, signed the agreements. With their signatures, Secretary Clinton and Foreign Minister Qureshi delivered on promises to expand cooperation and to provide services, such as electricity, most important to the daily lives of the Pakistani people. The rehabilitation of the Jamshoro Thermal Power Station near Hyderabad in Sindh Province will restore 95 MW of capacity to the national grid. In addition to the additional power, the repair of critical equipment will save Jamshoro at least $11.4 million each year in fuel costs. Improvements at the Muzaffargarh Thermal Power Station near Multan in Punjab Province will result in a capacity gain of 165 MW for the national grid with essential upgrades that bring the power stations performance closer to optimum levels. Based on the improved performance, the Muzaffargarh Station will save an estimated $17 million each year in fuel costs. The repair of the Guddu Thermal Power Station at the confluence of the three provinces of Sindh, Punjab, and Balochistan will restore 35 to 55 MW of capacity using more efficient turbines, and save approximately $2.3 million each year in fuel costs. Each of these restoration projects will be closely coordinated with power station managers, and we will work with plant managers to train staff in the state-of-the-art operation and maintenance practices that will sustain these vital repairs. The rehabilitation of these three thermal power stations directly addresses the priorities of everyday Pakistanis, and is consistent with the first phase of U.S. assistance to Pakistans energy sector for quick, high-impact efficiency gains that save fuel and lighten the financial burden on electricity generation companies. Implementation of a similar efficiency program at the Tarbela Dam Hydroelectric Power Station is already under way for an additional 80 MW in capacity. Dr. Abdul Hafeez Shaikh, Advisor to the Prime Minister on Finance and Economic Affairs, Ms. Shahnaz Wazir Ali, Advisor to the Prime Minister on Social Issues, Kamal Majidullah, Advisor to the Prime Minister on Agriculture and Water Zia-ur-Rahman, Secretary, Agriculture, Salman Siddique, Secretary, Finance attended the event. US Special Representative Richard Holbrooke and senior USAID officials attended the ceremony on the American side. Dr Hafeez Shaikh and Ms Shahnaz Wazir Ali thanked the United States expression of commitment at the strategic dialogue to aid projects in key water, energy and social fields, saying these will help overcome shortages and promote better understanding between the two nations. Secretary Shahid Rafi told newsmen that rehabilitation of the power plants is the quickest way to overcome power shortages as collectively they will generate around 400 MW of additional electricity. Holbrooke, speaking on the occasion, said the Obama Administration is working in consultation with Islamabad on assisting projects that bring qualitative difference in the lives of ordinary Pakistanis.