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FRANCE provides soft loans to Pakistan for various projects


ISLAMABAD, SEPT 22 (DNA) – Muhammad Saleem Sethi, Secretary of Economic Affairs Division (EAD), Mrs. Martine DORANCE, Ambassador of France, and Mr. Jacky AMPROU, Country Director of the French Agency for Development (AFD), signed the Credit Facility Agreement (CFA) and Grant Financing Agreement for the rehabilitation of Warsak Dam Hydropower project.This project aims at rehabilitating the 243 MW existing Warsak Dam & hydropower plant built in the 1960s on Kabul River, generating up to 1100 GWh per year. The project is being implemented by the Water & Power Development Authority (WAPDA).

AFD Board approved a loan for a total amount of 41,5 M€ which includes 1,5 M€ for WAPDA hydropower training centre facilities.

The total cost of the Project is 162 M€ and it is being co-financed with the German Development Bank (KfW), European Investment Bank (EIB), and WAPDA / GoP contributions.

The French Agency for Development has arranged an additional 4.5 M€ grant delegated by the European Union / Asia Investment Facility (EU/AIF) for support to Warsak dam rehabilitation components.

This grant will address issues related to environmental issues, flood & sedimentation management, community development and enhancement of maintenance of existing workshop. These measures will also be part of the long-term capacity-building programme implemented by WAPDA.

The project upon completion will ensure: Safeguarding the existing capacity of WARSAK Dam – 243 MW for next term; Adaptation of climate change especially environmental measures, flood & sedimentation management in the Peshawar region & Kabul river, Enhancement of existing workshop, to increase the safety and profitability of hydropower projects;

Besides these projects France, through AFD, contributes to address the current national energy crisis and emerges as a major contributor, in line with the pledge made by the French Government at the Tokyo Conference in April 2009 (i.e. 300 millions Euros in the energy and water sectors – currently committed more than 100% i.e. 321.5 Million Euros- approx. PKR 40 billion ).=DNA

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