Pakistan’s 128MW hydropower project gets €120 million soft loan from France

France will provide 120 million euro (PKR 29 billion) soft loan for the 128-Megawatt Keyal Khwar hydropower project in Khyber Pakhtunkhwa.

Dr. Kazim Niaz, Secretary of Economic Affairs Division (EAD), French Ambassador
Nicolas Galey, and Philippe Steinmetz, the country director of the French
Development Agency (AFD), signed the Credit Facility Agreement of €120 million to finance the Keyal Khwar hydropower project in Islamabad on January 16, 2023.

This soft loan will support the Water & Power Development Authority (WAPDA) in its mandate of hydroelectricity sector development in Pakistan. The funding will also help enhance the competitiveness of renewable power generation. Such benefits will contribute improving affordability and scaling up the energy supply. These will be achieved while also mitigating the impacts of power generation on climate and environment, in line with the policies of the Government of Pakistan.

Highlights of hydropower project

  • The 128-megawatt facility is in the province of Khyber Pakhtunkhwa near the city of Pattan.
  •  The plant is located on a tributary of the Indus River in northern Pakistan. 
  • The hydroelectric plant will produce 420 gigawatt-hours annually.
  • It will help mitigate the flood-affected area of KP and rehabilitation of the infrastructure while building the hydropower project.
  • It will replace thermal power plants and avoid the equivalent of the emission of 182,000 tons of CO2 per year.
  • The scheduled commissioning of the plant is in 2028.
  • It will improve the quality of life for 600,000 inhabitants.
Dr. Kazim Niaz, Secretary of Economic Affairs Division (EAD) and French Ambassador Nicolas Galey at the signing og Credit Facility Agreement of €120 million to finance the Keyal Khwar hydropower project on January 16, 2023, in Islamabad, Pakistan. (Image Credit: PID)

The project will contribute to the Government of Pakistan’s strategy to develop green energy, reduce greenhouse gas emission, in line with the French Government’s agenda of promoting climate-friendly projects and with the French pledge and commitments announced at the International Conference on Climate Resilient Pakistan which took place in Geneva on January 9, 2023.

France, through AFD, is providing technical and financial support in several
sectors such as energy, water and sanitation, urban development, rural development, health and cultural heritage. Since 2009, €1332 million has been committed to Pakistan. The clean energy sector has mobilized a total of €930 million.

Nuxhat Khurshid
Nuxhat Khurshid is a passionate writer, reader and documentary-maker. She mostly writes on environment, climate change and development issues for Islamabad Scene.

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