Pakistan and Germany have signed a €71 million agreement to improve renewable energy infrastructure and support people displaced by devastating floods this summer, the German embassy said.
The deal was brokered with the help of Germany’s KfW Development Bank, which closely cooperates with European Union institutions on behalf of the German Federal Government.
Under the agreement, the German bank signed with the Pakistani government’s Economic Affairs Divison and the National Transmission and Despatch Company Limited (NTDC), €46.2 have been allocated for the construction of a 500-kilovolt grid station in Chakwal, a city in Rawalpindi division of Punjab province. This grid station would improve power supply to the industrial sector in Punjab but also to electric supply companies in Islamabad and Faisalabad.
Alfred Grannas, the German Ambassador to Pakistan, announced the development on Twitter.
He said out of the total of €71 million, €25 would be allocated to ease the condition of people displaced by recent floods, which claimed more than 1,700 lives, affected 33 million people, and incurred losses worth $30 billion, according to Pakistan government.
He said that Germany would also provide Pakistan with an additional sum of €16.5 million to invest in solar energy projects to tackle climate change.