Written By: Jim Greenberg
The European Investment Bank (EIB) has granted a US$137 million (a €100 million) long-term loan to the Government of Pakistan to construct a 128 Megawatt (MW) hydropower plant.
Granted yesterday at a ceremony in Islamabad, a declaratory statement signed between EIB’s Vice-President, Magdalena lvarez Arza and the secretary of Pakistan’s Economic Affairs Division, Nargis Sethi will help grow Pakistan’s clean energy. The loan follows investment from the German Development Bank (KfW), which has already contributed co-financing of $133 million (€97 million for the project).
The EIB Vice President, who is in-charge of operations in Asia, stated that the EIB bank is committed to supporting investment of clean energy and climate change mitigation.
“The European Investment Bank is committed to supporting investment in renewable energy and helping countries around the world reduce carbon emissions”, said Ivarex Alvarez. “At the same time, the EIB is pleased to be able to support Pakistan in this important sector, addressing the increased demand of energy in the country.”
She added, “The investment will provide a clean and reliable supply of electric power contributing to climate change mitigation, which is a fundamental goal of the European Union.”
The hydropower plant, to be developed by Pakistan’s Water and Power Development Authority (WAPDA), aims to boost the country’s clean energy production and reduce carbon dioxide emissions. The plant, named Keyal Khwar, will be built in Dasu district of Khyber Pakhtunkhwa on the right tributary of Indus Rover and will be complete by 2018.
Supporting the move to clean energy in Pakistan, finance minister Mohammad Ishaq Dar announced at the start of February that the government is fully committed towards increasing the country’s existing 19,000 MW power potential to 24,000 MW by 2018.