France provides 61mn euros to Pakistan for two hydropower projects

02 Apr, 2014

ISLAMABAD: France has granted Euro 61 million (Rs. 8.5 Billion) funding for two hydropower projects in Pakistan.

The two projects were Mohmand hydropower project (740 MW) located in Mohmand agency, KPK and harpo hydropower project (35 mw) in the Gilgit-Baltistan, Skardu region.

Agreement to this effect was signed by Ms. Nargis Sethi, Secretary of Economic Affairs Division (EAD) and Philippe Thiebaud, Ambassador of France to Pakistan, and Denis CASSAT, Country Director of the French Development Agency (AFD), under 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 in the country, a statement issued by the French Embassy Islamabad said on Wednesday.

The Mohmand / Munda Hydropower project (740 MW) is located in the MOHMAND AGENCY, of Khyber Pakhtunkhwa (KPK).

The Phase- I of the project 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) 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 millions Euros in the energy and water sectors - currently committed at 93% i.e. 280 Million Euros).

The AFD is also supporting the development of renewable energies in order to improve the power supply in Pakistan.

The three projects currently being developed are 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) and 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 & Power Development Authority (WAPDA) and provincial operators like Power Development Organization (PDO) - AJK, Pakhtunkhwa Hydel Development Organization (PHYDO), KPK, etc.

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