The NTDC will be helped by this soft loan to fulfil its transmission mandate and to deliver dependable and effective power in Punjab’s major cities.
The Credit Facility Agreement of €180 million was signed by Dr Kazim Naiz, Secretary of the Economic Affairs Division (EAD), H.E. Mr Nicolas Galey, French Ambassador, and Mr Philippe Steinmetz, Country Director of the French Development Agency (AFD), to finance the National Transmission & Despatch Company (NTDC) Transmission Lines and Grid stations Projects. Near the cities of Vehari, Arifwala, and Sialkot in the Punjab province are where these NTDC projects are situated.
The NTDC will be helped by this soft loan to fulfil its transmission mandate and to deliver dependable and effective power in Punjab’s major cities.
Additionally, the funding will contribute to more effective power distribution and green energy transmission in Pakistan. These advantages will improve affordability and expand the energy supply. These will be accomplished in accordance with the policies of the Pakistani government while also reducing the effects of climate change.
This funding provided by AFD will:
Improve the ability to mitigate and adapt to climate change, as well as the reliability of the power supply.
Benefit and enhance the 26 million people’s quality of power supply.
Deliver dependable power to the largest industrial and sporting city (Sialkot).
The three components of the project are as follows:
There will be a new 220 kV substation built in Arifwala, and 50 km of new 220 kV transmission lines will be connected to it. The brand-new substation will join the MEPCO grid;
Vehari’s existing 220 kV substation will be upgraded to 500 kV status, and 48 km of new 500 kV transmission lines will be connected to it. A connection to the MEPCO grid exists at the substation;
Construction of a new 500kV substation, 55km of brand-new 500kV transmission lines, and 36km of brand-new 220kV transmission lines in the Sialkot area. The GEPCO grid will be linked to the new substation.
The project will help the Pakistani government achieve its goals of developing green energy and reducing greenhouse gas emissions while also supporting French efforts to promote climate-friendly projects. The pledge and commitments made by France at the International Conference on Climate Resilient Pakistan, which took place in Geneva on January 9, 2023, are also included in this.
Through the French Development Agency, France offers financial and technical assistance in a number of fields, including energy, water and sanitation, urban and rural development, health, and cultural heritage.
Pakistan has received €1.232 billion in commitments since 2006. A total of €930 million has been mobilised by the clean energy industry alone.
AFD is engaged in almost 5000 projects across 150 countries, all of which aim to protect common resources with a focus on peace, biodiversity, and a stable climate while also advancing gender equality, health, and education.