France unveils €183.3 million aid for energy sector

ISLAMABAD: France has announced loans totalling 183.3 million euros to fund four power projects which will generate 210 megawatts of electricity.

This was declared by France’s Ambassador to Pakistan, Daniel Jouanneau, at the signing ceremony of a financing arrangement to rebuild a burnt hydropower plant in Malakand.

Unveiling the complete utilisation plan of pledges made during a donor conference last year, the ambassador said that two of the four projects would be located in Gilgit-Baltistan while the remaining two would be situated in Azad Jammu and Kashmir.

He explained that feasibility studies for these projects were being carried out and loan agreements would be formally signed as soon as the studies are completed. All four are hydropower projects and include Bashu, Jagran II, Jing and Fender.

In addition to the 183.3 million euros, France on Monday signed an agreement to lend 26.5 million euros to Pakistan in order to reconstruct a burnt hydropower plant located in the troubled valley of Malakand.

Jabban hydropower plant stopped generating power in 2006 after a fire incident. It is estimated that after the repair work the plant will be able to generate 22MW electricity.

“France is keen to help Pakistan address the challenges in the energy sector. The loan is aimed to increase electricity generation and contribute to rehabilitation of the war-affected areas of Pakistan,” commented the French ambassador. Ambassador Daniel Jouanneau and Secretary of the Economic Affairs Division, Sibtain Fazal Halim signed the financing agreement.

Published in The Express Tribune, July 27^th, 2010.