Pakistan and Asian Development Bank sign $325 million loan agreement for clean energy.
The Asian Development Bank (ADB) will provide 325 million dollars to Pakistan for micro hydro power projects in Khyber Pakhtunkhwa and solar power projects in the Punjab.
Pakistan government and Asian Development Bank (ADB) have signed a loan agreement of $325 million to target off-grid areas of Khyber Pakhtunkhwa and Punjab and will contribute to Pakistan’s national goal of enhanced energy security.
The ‘Results-Based Loan: Access to Clean Energy Investment Programme’ was signed by, Additional Secretary, Economic Affairs Division (EAD), Anjum Assad Amin and Country Director ADB, Werner E. Liepach.
Speaking on this occasion, Finance Minister Mohammad Ishaq Dar said that $237 million of the loan would be utilized in Khyber Pakhtunkhwa on installation of approximately 1,000 micro-hydropower plants while approximately $87 million would be spent in Punjab on installation of solar facilities in approximately 17,400 schools and public health facilities.
The program will be implemented over a period of 5 years (2017-2021). It includes provision of training to women to equip them to use the benefits resulting from the availability of electricity in each province.
The project will also provide for strengthening of the procurement, monitoring and internal audit functions of Khyber Pakhtunkhwa & Punjab including the establishment of an information and communications technology driven Program performance monitoring system.
Finance Minister stated that ADB along with other development partners has contributed significantly for economic development in Pakistan. He appreciated ADB’s continued support, especially for energy and infrastructure sectors which are the top most priority of the government.
“ADB has all along been our great partner”, he added. Finance Minister also mentioned about the Bloomberg report which stated that most of Pakistan’s developments are fairly positive. He stated all this bears testimony to the economic achievements of the present Government through a concerted reforms agenda.
Country Director, ADB, Mr. Werner Liepach, in his brief comments, stated that “the most significant aspect of the project being undertaken is that it is people centric and as many as 2.6 million students will benefit from it, of which 1.2 million are girls”.
Mr. Werner Liepach added that this investment would directly target poor people and help to improve their livelihood.
As per agreement, the ADB’s financial assistance would target off-grid areas of KP and Punjab and contribute to Pakistan’s national goal of enhanced energy security.
The installation of solar facilities in approximately 8,187 schools and public health facilities in Khyber Pakhtunkhwa, with at least 30% of the said girls schools are also included in the programme.
While in Punjab, the fund would be utilized for installation of solar facilities in approximately 17,400 schools and public health facilities, with at least 30 percent girls’ schools.
It would also include the installation of a solar facility in the University of Bahawalpur.