France provides 50mn Euros loan for rehabilitation of two state-run hydel power station

MIRPUR (AJK): Noor Ahmed, Secretary of Economic Affairs Division (EAD) Government of Pakistan, Marc Barety, Ambassador of France, and Mr. Jacky Amprou, Country Director of the French Agency for Development (AFD), Friday signed the Credit Facility Agreement worth Euros 50 million and the Grant Agreement worth 0.2 million Euros to finance the rehabilitation of Chitral and Dargai Hydel Power Stations, it was officially said.

Muhammad Arshad Chaudhry, Member (Power) WAPDA and other officers were also present on the occasion. WAPDA said in an officiale press release issued here.

This funding will allow the modernization of the two hydel power stations and upgrading of their generation capacity from 20 MW to 22 MW for Dargai Hydel Power Station and from 1 MW to 5 MW for Chitral Hydel Power Station. This will provide adequate facilities for the generation, transmission, and distribution of energy to meet current and future needs of Chitral and Malakand regions.

This will also result in industrial, agricultural and economic development of these regions.

Besides, rehabilitation and up-gradation of the said hydel power stations will contribute to the government of Pakistan’s strategy to develop green energy, reduce green house gasses emission which is very much aligned with French Government’s agenda of promoting climate friendly projects, it said.

It may be mentioned that WAPDA has been implementing a two-pronged strategy for optimal utilization of hydropower resources in Pakistan. Under the strategy, WAPDA has not only initiated new hydropower projects but has also been rehabilitating and upgrading its existing hydel power stations to maximize the ratio of environment friendly and low-cost hydel electricity in the National Grid. Rehabilitation of Dargai and Chitral Hydel Power Stations is part of the said strategy.

Dargai Hydel Power Station located in Malakand was constructed in 1952, while Chitral Hydel Power Station located in Chitral was completed in two phases in 1975 and 1982.