PR No. 144 France Provides Euro 165 Million Soft Loan For Energy Projects Islamabad
Finance Minister Senator Mohammad Ishaq Dar witnessed signing of two loan agreements between Government of Pakistan and French Development Agency (AFD) for financing of energy sector projects i.e Power Transmission Enhancement Investment Tranche-IV and Mangla Power Plant Rehabilitation Project amounting to €165 million.
Mr. Shahid Mahmood, Secretary, Economic Affairs Division (EAD), Ms. Martine Dorance, Ambassador of France, and Mr. Jacky AMPROU, Country Director of the French Agency for Development (AFD), signed the Agreements at a ceremony held at the Ministry of Finance on Thursday.
The Finance Minister on the occasion 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 i.e water & sanitation in Faisalabad, Clean Energy project in Kyber Pakhtunkhwa & Punjab and Urban Transport System in Kyber Pakhtunkhwa .
Ambassador of France Ms Martine Dorance said that France and Pakistan enjoyed long history of cooperation and that Government of France was pleased to support the Government of Pakistan in different areas.
It may be mentioned that the main objective of the program 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 recently passed legislation that will improve governance through more clearly defined roles for both the government and the energy sector regulator, reducing debt levels in the energy sector, and increasing investment.
The energy reform program demonstrates government’s commitment to improve the reliability, sustainability, and affordability of the energy sector. Maintaining the momentum for reform will help ensure that all Pakistanis have access to electricity, while keeping the economy on a high-growth path.