EIB agrees to provide €100m for 128MW Pak hydro project

STAFF REPORT ISB: The European Investment Bank (EIB) is providing a €100m long-term loan to Pakistan to finance the construction of the 128MW Keyal Khwar Hydropower project.

KWF will also offer financial support for the project, a statement from the EIB said.

EIB Vice President Magdalena Alvarez, during his recent visit to Pakistan, had signed an agreement with the government in this regard. He also invited to with future energy efficiency projects.

Alvarez, who is in charge of the EIBs operations in Asia, said, “The EIB is committed to supporting investment in renewable energy and helping countries around the world reduce carbon emissions. At the same time the EIB is pleased to be able to support Pakistan in this important sector, addressing the increased demand of energy in the country.”

The investment will provide a clean and reliable supply of electric power contributing to climate change mitigation, which is a fundamental goal of the EU, he maintained.

The WAPDA will construct the plant. It is estimated that the construction period will be four years starting from January 2013.

This is the fifth project supported by the EIB in Pakistan. Since it began lending in Asia in 1993, the EIB has provided more than €5.1 billion on long-term basis.

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