The Ministry of Economic Affairs (MoEA) and the French Development Agency (AFD) have signed a Credit Facility Agreement worth €180 million to support the National Transmission and Despatch Company (NTDC) projects in Sialkot, Arifwala, and Vehari. This agreement was signed by Dr. Kazim Niaz, the Federal Secretary of the MoEA, Nicolas Galey, the Ambassador of France, and Philippe Steinmetz, the Country Director of AFD.
The soft loan provided by France will aid the NTDC in its mission to ensure reliable and efficient power supply in major cities of Punjab. It will also contribute to improving the transmission and distribution of electricity in Pakistan, leading to enhanced affordability and scalability of the energy supply.
Furthermore, these projects align with the Government of Pakistan’s commitment to combating climate change. As a significant portion of power generation in Pakistan is from hydel sources, the transmission of green energy will help mitigate the impacts of climate change. France’s support reflects its commitment to fighting climate change, as announced at the International Conference on Climate Resilient Pakistan in Geneva.
The French Development Agency has been actively involved in providing technical and financial assistance in various sectors, including energy, water and sanitation, urban development, and cultural heritage.
Under the NTDC projects, the funds will be utilized for the construction of a new 220kV substation and 50km of transmission lines in Arifwala, connecting it to the MEPCO grid. In Vehari, the existing 220kV substation will be upgraded to 500kV level, along with the installation of 48km of new 500kV transmission lines. Additionally, a new 500kV substation and a 55km transmission line will be constructed in Sialkot, connecting it to the GEPCO grid.
The signing of this agreement marks a significant milestone in the collaboration between Pakistan and France, and the Federal Secretary expressed gratitude to the French Government and AFD for their financial assistance.