ISLAMABAD: The government of Japan will grant a loan amounting to 2.665 billion Yen (equivalent to US$ 24 million) for implementation of the Islamabad-Burhan transmission line reinforcement project.
In this regard an agreement was signed on Thursday between the Ambassador of Japan Mr. Takashi Kurai and Additional Secretary, Economic Affairs Division (EAD) Ms. Anjum Assad Amin.
Minister for Water and Power Khawaja Muhammad Asif and State Minister of Foreign Affairs of Japan Mr. Nobuo Kishi witnessed the signing ceremony.
Minister for Water and Power Khawaja Asif stated that Pakistan values Japanese assistance in the energy sector and Japan’s economic cooperation has played an imperative role in the development of socio-economic sector focused on human uplift, poverty reduction and capacity building of institutions.
He said the energy sector has direct impact on economic growth and prosperity of Pakistan. The total loans from government of Japan currently stand at US$ 960 million and grants at US$ 156 million.
Japan Cooperation Agency (JICA) will implement the loan project to improve reliability of the national grid to meet the growing demand for electricity transmission through reinforcement of transmission lines necessary for power supply to the Islamabad capital territory and surrounding areas and contribute to the improvement of economic infrastructure of Pakistan.
The scope of the project includes civil work and equipment for transmission lines of 220 KV between the Tarbela Hydropower Plant and the Burhan sub-station.
Japan has provided the loan on concessional terms and conditions with interest rate equivalent to 0.12 percent and repayment during 30 years including ten years grace period.
Khawaja Asif said that Pakistan looks forward to further economic cooperation with Japan for the benefit of the people of Pakistan in line with the government’s priorities and strategy.