The French loan will support the 128 MW Keyal Khuwar hydropower project, which is located near Pattan in the province of Khyber Pakhtunkhwa (KPK).
The French government will provide a €120 million soft loan for the 128 MW Keyal Khuwar hydropower project. According to the Economic Affairs Division, the agreement was signed by Kazim Niaz, Secretary of the Ministry of Economic Affairs (MoEA), and Mr. Philippe Steinmetz, Country Director of the French Agency for Development (AFD).
The French loan will support the 128 MW Keyal Khuwar hydropower project, which is located near Pattan in the province of Khyber Pakhtunkhwa (KPK). This soft loan will help the Water and Power Development Authority (WAPDA) fulfil its mandate of developing Pakistan’s hydroelectricity sector, according to the statement.
The funding will also help to improve the competitiveness of renewable energy generation by promoting affordability and expanding energy supply. These will be achieved while also mitigating the effects of power generation on climate and the environment, according to the government of Pakistan’s policies.
In accordance with the French pledge and commitments announced at the International Conference on Climate Resilient Pakistan, which took place in Geneva on January 9, 2023, the project will contribute to the government of Pakistan’s strategy to develop green energy, reduce greenhouse gas emissions, and implement climate-friendly projects.
According to the statement, the Republic of France is working in Pakistan through the French Agency for Development to provide technical and financial assistance in the energy and urban development sectors, aiming at green investment in Pakistan.
Hydropower projects are considered an important source of renewable energy because they generate electricity using the energy of falling water, which is a natural and sustainable resource. Hydropower does not produce greenhouse gases or air pollutants, making it a clean source of energy.
It is a reliable source of energy because it is not dependent on weather conditions like solar and wind power. Hydropower can also play an important role in helping countries meet their renewable energy targets, reduce their dependence on fossil fuels, and create jobs in the construction and operation of hydropower projects.