ISLAMABAD - France has provided Pakistan Rs 8.5 billion for two hydropower projects, the Mohmand Hydropower Project (740MW) located in KPK and Harpo Hydropower Project (35MW) in the Gilgit-Baltistan.

To this effect, Nargis Sethi, Secretary of Economic Affairs Division (EAD), Philippe Thiébaud, Ambassador of France, and Denis CASSAT, Country Director of the French Development Agency (AFD), signed the Credit Facility Agreements (CFAs) on Wednesday. This financing aims at completing the 02 hydropower projects with a total capacity to produce 785MW.

The Mohmand/Munda Hydropower project (740 MW) is located in the Mohmand Agency, Khyber Pakhtunkhwa (KPK). The Phase-I of the project being financed by AFD will enable the Government of Pakistan to complete the detailed engineering design, preparatory works and financial closure for construction of the project.

The Harpo hydropower project (35MW) located in the Gilgit-Baltistan, Skardu region will enable the Government of Pakistan to meet the future demands of the region and also to establish the local distribution and transmission network which will benefit the local community to get the uninterrupted power supply. This project is being financed with German government and KFW.These projects, upon completion, will ensure adaptation of climate change (droughts and floods) in the Khyber Pakhtunkhwa especially in the Peshawar & Noshawara region, i0mprove the resilience, safety and profitability of hydropower projects.

Besides these projects, France, through AFD, contributes to address the current national energy crisis and emerges as a major contributor, in line with the pledge made by the French government at the Tokyo Conference in April 2009 (i.e. 300 millions euros in the energy and water sectors - currently committed at 93% i.e. 280 million euros).

The AFD is also supporting the development of renewable energies in order to improve the power supply in Pakistan. In addition, to reduce the power demand and improve energy efficiency, AFD is also co-financing with the Asian Development Bank a programme on energy efficiency in the domestic and industrial sectors.