Islamabad, 17 January 2023 (TDI): France will provide a soft loan of 120 million euros for the Keyal Khwar 128 MW Hydropower Project in Khyber Pakhtunkhwa (KP) province.
Kazim Niaz, Secretary of Economic Affairs of Pakistan, and Philippe Steinmetz, Country Director of the French Agency for Development, signed an agreement in this regard. The information was shared via a news release from the Economic Affairs Division.
Overview of the project
The French loan would support the 128 MW facilities in Pattan, KP. It would also assist the Water and Power Development Authority (WAPDA) in developing Pakistan’s hydroelectricity sector.
The funding would also help improve renewable energy generation’s competitiveness, promoting affordability and increasing the energy supply.
The Keyal Khwar project, according to the news release, would contribute to the government’s strategy to develop green energy, reduce greenhouse gas emissions, and fund climate-friendly projects.
It is in line with the French pledge and commitments announced at the International Conference on Climate Resilient Pakistan, which took place in Geneva on January 9, 2023.
The Government of France has been working in Pakistan through the French Agency for Development. It is providing financial assistance in the energy sector, with the goal of encouraging green investment in the country.
While signing the agreement, the Secretary of Economic Affairs thanked the French government and French Agency for Development for providing financial assistance to Pakistan.
France Agency for Development & Pakistan
The agency is working in Pakistan since 2006, offering financial solutions and technical assistance to support the Pakistani government in its development policy.
It works with government partners and local authorities to develop low-carbon infrastructures and improve access to essential services for the population.
In Pakistan, it is specifically working with a “green and inclusive growth mandate”. The agency is providing financial energy efficiency and the production of hydroelectricity. Its actions thus target renewable energies in order to further climate change mitigation and adaptation.
To fulfill its goals, it provides loans and mobilizes European Union grants as part of the Asia Investment Facility. The Agency’s Pakistan office is directly attached to the South Asia regional office in New Delhi.