France Provides 60 Billion PKR Soft Loan to NTDC
Dr. Kazim Naiz, Secretary of Economic Affairs Division (EAD), H.E. Nicolas Galey, Ambassador of France, and Mr. Philippe Steinmetz, Country Director of the French Development Agency (AFD), signed the Credit Facility Agreement of €180 million to finance the National Transmission Despatch Company (NTDC) Transmission Lines and Grid stations Projects.
According to the Press Release(PR) issued by Embassy, these Projects are 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 to provide reliable and efficient
power in major cities of Punjab. The funding will also help enhance the transmission of green energy and efficient power distribution in Pakistan, said the PR. It added “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 statement also said, the funding provided by AFD will also help to enhance the reliability of the power supply and climate change mitigation and adaptation, benefit & improve the quality of power supply for 26 million inhabitants and provide reliable power supply to biggest industrial and sports city (Sialkot).
In Arifwala a new 220kV substation and 50km of new 220kV will be established and transmission lines to be connected to it. The new substation will be connected to the MEPCO
grid.
While, project in Vehari will be upgraded of the existing 220kV substation to 500 kV level and 48km of
new 500kV transmission lines to be connected to it. The substation is also be connected to the MEPCO grid. Sialkot will get new 500kV substation and 55km of new 500kV transmission lines and 36km of new 220kV transmission lines to be connected to it and the new substation will be connected to the GEPCO grid.
The project will contribute to Pakistan’s strategy to develop green energy, reduce greenhouse gas emissions, in line with the French Government’s agenda of promoting climate-friendly
projects, said the PR.
It is worth mentioning that it such projects are 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.
