Representational image. PHOTO: REUTERS
ISLAMABAD: Pakistan and France signed a credit facility agreement on Thursday worth €94.01 million (Rs11.7 billion) for the Extension of Water Resources Faisalabad phase-II project.
The agreement was signed by Economic Affairs Division (EAD) Secretary Noor Ahmed, French Ambassador to Pakistan Marc Barety, and French Agency for Development (AFD) Country Director Jacky AMPROU.
Under the agreement AFD would provide a soft loan for the project for a period of 20 years, including a grace period of six years at an interest rate of six-month Euro interbank offered rate (Euribor) with a spread of 52 basis points.
Since the groundwater quality of Faisalabad city is brackish, the proposed project would augment Faisalabad Water and Sanitation agency’s capacity to provide 30 million gallons per day (MGD) of additional clean drinking water to citizens through surface water treatment plant, said a press statement issued by the finance ministry.
France, through AFD, is providing technical and financial support in energy and urban development sectors in Pakistan.
Published in The Express Tribune, May 24th, 2019.
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