ISLAMABAD: The Government of France has extended a credit facility agreement worth €180 million to support infrastructure projects undertaken by the National Transmission and Despatch Company (NTDC) in the cities of Vehari, Aarifwala, and Sialkot.
The agreement was signed by Nicolas Galey, Ambassador of France, Dr. Kazim Niaz, Philippe Steinmetz, Country Director of the French Development Agency (AFD), and the Federal Secretary of the Ministry of Economic Affairs (MoEA).
The allocated funds will be utilized for grid station projects and the development of transmission lines in Sialkot, Vehari, and Aarifwala. This financial support will enable the NTDC to fulfill its mandate of providing reliable and efficient power supply in major cities of Punjab. Furthermore, it will contribute to enhancing the transmission and distribution of electricity across Pakistan, improving affordability, and scaling up the energy supply.
Projects Align with Pakistan’s Commitment to Combat Climate Change
These projects align with the Government of Pakistan’s commitment to combat climate change, as a significant portion of the country’s electricity generation is derived from hydroelectric sources. By promoting the transmission of green energy, the initiatives aim to minimize the effects of climate change. The funding provided by France reinforces the country’s obligations and pledges made at the international conference on a climate-resilient Pakistan held on January 9, 2023, in Geneva.
The Republic of France, through the French Development Agency, continues to extend financial and technical support in various sectors, including water, energy, sanitation, cultural heritage, and urban development. The credit facility agreement will specifically aid the NTDC in improving its infrastructure and expanding its transmission capabilities.
The projects supported by the French loan include the construction of a new 220kV substation and 50km of transmission lines in Aarifwala, connecting it to the MEPCO grid. Additionally, the funds will contribute to the upgrade of the Vehari substation to 500kV status and the construction of 48km of new 500kV transmission lines. These developments will enhance the efficiency of the MEPCO grid.
In Sialkot, the loan will facilitate the construction of a new 500kV substation and the connection of two 55km transmission lines, linking it to the GEPCO grid.
