ISLAMABAD: France signed a credit facility agreement of 180 million euros with Pakistan on Wednesday to finance the National Transmission and Dispatch Company (NTDC) for improving the transmission of electricity in the country.
The Federal Secretary of the Economic Affairs Division (EAD) Dr. Kazim Niaz, Ambassador of France to Pakistan, Mr. Nicolas Galey, signed the agreement in the presence of the Country Director of the French Development Agency (AFD), at a reception held today.
“The credit facility is for three NTDC projects located in Punjab in the vicinity of the cities of Vehari, Arifwala, and Sialkot. This soft loan will support the NTDC in its transmission mandate and provide reliable and efficient power in major cities in Punjab,” said a press release issued by the French embassy Wednesday.
“The funding will also help enhance the transmission of ‘green energy’ and efficient power distribution in Pakistan. Such benefits will contribute to improving affordability and scaling up the energy supply. These will be achieved while also mitigating the impacts of climate change, in line with the policies of the Government of Pakistan,” the press release added.
The AFD funding will help enhance the reliability of the power supply and climate change mitigation and adaptation as it will benefit and improve the quality of power supply for 26 million inhabitants and will also provide a reliable power supply to Sialkot, the biggest industrial and sports city of Pakistan, the French Embassy said.
Under this agreement, a new 220 KV substation and 50 km of new 220 KV transmission lines will be connected in Arifwala, and the new substation will be connected to the MEPCO grid.
In Vehari, the existing 220 kV substation will be upgraded to 500 kV level, and 48km of new 500 kV transmission lines will be connected to it. This substation is also connected to the MEPCO grid, while in Sialkot, the construction of a new 500 kV substation, 55km of new 500 kV transmission lines, and 36km of new 220 kV transmission lines will be connected to it. The new substation will be connected to the GEPCO grid.
The project will contribute to the Government of Pakistan’s strategy to develop green energy and reduce greenhouse gas emissions, in line with the French Government’s agenda of promoting climate-friendly projects. It is also part of the pledge and commitments announced by France at the International Conference on Climate Resilient Pakistan, which took place in Geneva on January 9, 2023, the French Embassy press release said. “France, through the French Development Agency (FDA), is providing technical and financial support in several sectors such as energy, water and sanitation, urban development, rural development, health, and cultural heritage.
Since 2006, €1.232 billion has been committed to Pakistan. The clean energy sector alone has mobilised a total of €930 million,” the French Embassy said.
