France provides €180 million soft loan for the National Transmission and Despatch Company (NTDC) projects located in Sialkot, Arifwala, and Vehari.
According to the Economic Affairs Division, the Federal Secretary, Ministry of Economic Affairs (MoEA) Dr. Kazim Niaz and Ambassador of France Nicolas Galey, and Philippe Steinmetz, Country Director of the French Development Agency (AFD), signed the Credit Facility Agreement worth €180 million to finance the NTDC Transmission Lines and Grid stations projects located in Vehari, Arifwala and Sialkot.
This loan will support the NTDC in its transmission mandate to provide reliable and efficient power supply in major cities of Punjab. The funding will also help enhance the transmission of efficient power distribution in Pakistan. Such benefits will contribute to improving affordability and scaling up the energy supply. Since most of the power generation in Pakistan is through hydel sources, hence the projects will help mitigate impacts of climate change through transmission of green energy, in line with the policies of the government and its commitment to fight climate change. It is also part of the pledge and commitments announced by France at the International Conference on Climate Resilient Pakistan in Geneva on January 9, 2023.
The Republic of France, through the French Development Agency, is providing technical and financial support in several sectors such as energy, water and sanitation, urban development, and cultural heritage.
The French loan will support NTDC in the components of the projects including the construction of a new 220kV substation and 50km of new 220kV transmission lines to be connected to it in Arifwala, which will be connected to the MEPCO grid. In Vehari, the existing 220kV substation will be upgraded to 500kV level with 48 km of new 500kV transmission lines connected to it. The enhanced capacity of the substation will add to the MEPCO grid. In Sialkot, construction of a new 500kV substation with 55 km transmission line connection will take place with the help of this project. The new substation will be connected to the GEPCO grid.
The Federal Secretary, MoEA, thanked the French Government and AFD for extending this financial assistance to Pakistan.
This is big loan for NTDC in Sialkot Arifwala and vehari. Big project for Foreign Direct Investment