Dr. Kazim Niaz, the federal secretary of the Ministry of Economic Affairs (MoEA), along with Nicolas Galey, the ambassador of France, and Philippe Steinmetz, the country director of the French Development Agency (AFD), have joined forces to solidify their commitment by signing a credit facility agreement worth €180 million. This agreement aims to provide the necessary financial backing for the National Transmission and Despatch Company (NTDC) to undertake crucial transmission lines and grid stations projects situated in Vehari, Aarifwala, and Sialkot.
Thiels loan will help NTDC in fulfilling jts transmission responsibilities and ensuring a reliable and efficient power supply in major cities of Punjab, Pakistan. Additionally, the funding will help improve the distribution of power throughout the country, ultimately contributing to enhanced affordability and scalability of energy supply.
One crucial aspect of these projects is their alignment with the government of Pakistan’s policies and commitment to combat climate change. Given that a significant portion of Pakistan’s power generation comes from hydel sources, these initiatives will facilitate the transmission of green energy and aid in mitigating the adverse effects of climate change.
This credit facility is in line with the pledge and commitments made by France at the International Conference on Climate Resilient Pakistan, held in Geneva on January 9, 2023. The French Development Agency, acting on behalf of the Republic of France, is actively providing technical and financial support across various sectors, including energy, water and sanitation, urban development, and cultural heritage.
Specifically, the French loan will support the NTDC in implementing key components of the projects. This includes the construction of a new 220kV substation and 50km of associated transmission lines in Aarifwala, which will be connected to the Mepco grid. In Vehari, the existing 220kV substation will be upgraded to a 500kV level, and an additional 48km of 500kV transmission lines will be installed. The upgraded substation will also integrate with the Mepco grid. Similarly, in Sialkot, the project involves constructing a new 500kV substation and connecting it with 55km of transmission lines, which will be linked to the Gepco grid.