Islamabad: France has extended a soft loan of €180 million (equivalent to PKR 55 billion) to finance the development of transmission lines and grid station projects in Punjab. These energy projects will be specifically implemented in the cities of Vehari, Arifwala, and Sialkot.
The credit facility agreement was signed on Wednesday (June 14) by Dr. Kazim Naiz, Secretary of the Economic Affairs Division; Nicolas Galey, the Ambassador of France, and Philippe Steinmetz, country director of the French Development Agency (AFD).
The National Transmission and Despatch Company (NTDC) of Pakistan, responsible for power transmission in the country, will utilise the loan to ensure a reliable and efficient power supply to major cities in Punjab.
One of the key objectives of the funding is to facilitate the transmission of green energy, contributing to the government’s efforts to mitigate climate change impacts. By improving affordability and scaling up the energy supply, the project will benefit and improve the power supply for approximately 26 million people and enhance the quality of power supply in the region.
Climate-friendly projects
This funding aligns with the Pakistan government’s strategy to promote green energy and reduce greenhouse gas emissions. It also resonates with the French government’s commitment to supporting climate-friendly projects, as emphasized during the International Conference on Climate Resilient Pakistan held in Geneva in January 2023. The funding from France will support the country’s energy goals and also fosters collaboration between France and Pakistan in sustainable development initiatives.
The French Development Agency has been providing technical and financial assistance to Pakistan since 2006. A total of 1.23 billion euros has been committed to various sectors, including energy, water and sanitation, urban and rural development, health, and cultural heritage. Last week, the French government contributed 3.5 million euros to the UN World Food Programme (WFP) to support the flood response for women and children affected by life-threatening malnutrition in Pakistan.
