France to provide two soft loans for energy projects

ISLAMABAD: France will provide two soft loans amounting to 165 million Euros to the government of Pakistan to finance energy sector projects such as Power Transmission Enhancement Investment Tranche-IV and Mangla power plant rehabilitation project.

An agreement was signed on Thursday between French Agency for Development (AFD) Country Director Mr. Jacky Amprou, Ambassador of France Ms. Martine Dorance, and Secretary Economic Affairs Division Mr. Shahid Mahmood. Finance Minister Ishaq Dar also witnessed the signing agreement.

The finance minister appreciated AFD’s continued support and assistance for economic development of Pakistan. He also lauded and welcomed AFD‘s new strategy to develop and open new sectors of cooperation such as water and sanitation in Faisalabad, clean energy projects in Khyber Pakhtunkhwa and Punjab and urban transport system in KP.

France ambassador Martine Dorance said that France and Pakistan enjoyed long history of cooperation and that government of France was pleased to support Pakistan in different areas.

The project aim is to make energy sector more affordable, reliable and sustainable, supporting economic growth through expeditious implementation of the National Power Policy 2013.

Under these programs, the government has embarked on a substantial reform initiative that aims to address financial sustainability issues in the energy sector. This includes recent legislation to improve governance through more clearly defined roles for the government and the energy sector regulator, reducing debt levels in the energy sector, and increasing investment.

The energy reform program’s momentum needs to be maintained to help ensure that all citizens have access to electricity, while keeping the economy on a high-growth path.