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France and Pakistan sign Credit Facility Agreements for establishment of 02 Hydropower projects

Lahore, April 02, 2014 (PPI-OT): On April 2nd, 2014, Ms. Nargis Sethi, Secretary of Economic Affairs Division (EAD), His Excellency Mr. Philippe Thiébaud, Ambassador of France, and Mr. Denis CASSAT, Country Director of the French Development Agency (AFD), signed the Credit Facility Agreements (CFAs) for the establishment of Pakistan 02 Hydropower projects. This financing aims at completing the 02 hydropower projects with a total capacity to produce 785 MW.

• The Mohmand / Munda Hydropower project (740 MW) is located in the MOHMAND AGENCY, Khyber Pakhtunkhwa (KPK). The Phase- I of the project (11 million Euros) being financed by AFD will enable the Government of Pakistan to complete the detailed engineering design, preparatory works and financial closure for construction of the project.

• The Harpo hydropower project (35 MW) being financed by AFD (50 million Euros) located in the Gilgit-Baltistan, Skardu region will enable the Government of Pakistan to meet the future demand of the region and also to establish the local distribution and transmission network which will benefit the local community to get the uninterrupted power supply. This project is being financed with German Government and KFW.

These projects upon completion will ensure:

– Adaptation of climate change (droughts and floods) in the Khyber Pakhtunkhwa especially in the Peshawar and Noshawara region;

– Improve the resilience, safety and profitability of hydropower projects;

Besides these projects France, through AFD, contributes to address the current national energy crisis and emerges as a major contributor, in line with the pledge made by the French Government at the Tokyo Conference in April 2009 (i.e. 300 million Euros in the energy and water sectors – currently committed at 93% i.e. 280 Million Euros- approx. Rs. 40 billion ).

The AFD is also supporting the development of renewable energies in order to improve the power supply in Pakistan. There are three projects currently being developed:

– Jabban Hydropower Project (22 MW run-of-river hydroelectric power plant near Dargi, KPK, 26.5 million Euros)

– Jaggran II hydropower projects (48 MW run-of-river hydroelectric power plant on the Jaggran river, Neelum Valley, AJK , 68 million Euros);

– Hydropower Training Institute (HPTI) at Mangla (Grant of 2.5 million Euros to establish centre of excellence for hydropower in Pakistan).

In addition, to reduce the power demand and improve energy efficiency, AFD is also co-financing with the Asian Development Bank a programme on energy efficiency in the domestic and industrial sectors.

For future, AFD is also working with Pakistani authorities and is exploring additional potential projects to fund the rehabilitation or the extension of hydropower plants in various places in association with Water and Power Development Authority (WAPDA) and provincial operators like Power Development Organization (PDO)- AJK, Pakhtunkhwa Hydel Development Organization (PHYDO),KPK, etc.

For more information, contact:
Muhammad Abid Rana
Director Public Relations
Water and Power Development Authority (WAPDA)
G-32, WAPDA House, Lahore
Tel: +9242 9920 2633 and +9242 9920 2211 -2033 -2029
Cell: +92333 445 8293
Email: mabidrana@gmail.com

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