The European Investment Bank has granted a US$137 million long-term loan to the government of Pakistan for the construction of the 128-MW Keyal Khwar hydropower project during a ceremony earlier today.
Signed by EIB vice-president Magdalena Alvarez Arza and Pakistan's Secretary of Economic Affairs Division, Nargis Sethi, the declaratory statement adds to recent funding received from Germany's Kreditanstalt fur Wiederaufbau (KfW) development bank.
"The European Investment Bank is committed to supporting investment in renewable energy and helping countries around the world reduce carbon emissions," Alvarez said. "At the same time, the EIB is pleased to be able to support Pakistan in this important sector, addressing the increased demand of energy in the country.
"The investment will provide a clean and reliable supply of electric power contributing to climate change mitigation, which is a fundamental goal of the European Union."
Keyal Khwar is being developed by Pakistan's Water and Power Development Authority (WAPDA), which announced that it had awarded the project's civil works contracts to China's Sinohydro Corporation in January.
EIB said it is providing the loan under its current lending mandate for Asia and Latin America.
Keyal Khwar will be located on the Keyal River, which is a tributary to the Indus River in the Dasu district of the Khyber Pakhtunkhwa province. Construction of the project is expected to take four years.
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