To be constructed by the Water and Power Development Authority (WAPDA), the project calls for the construction of a 128MW run-of-river hydropower plant with a small 1.5ha reservoir for daily regulation to provide a clean and reliable supply of energy.
The project will provide significant economic benefits and contribute to climate change mitigation and environmental sustainability in Pakistan, while generating and feeding renewable energy into the national power grid and avoiding significant volumes of CO2 emissions.
Estimated to require four years for construction, the project is also being backed by KfW under the mutual reliance initiative and the collaborative approach will allow exploiting synergies between the two financial institutions.
EIB vice president Magdalena Alvarez said the bank is committed to supporting investment in renewable energy and helping countries around the world reduce carbon emissions.
"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," added Alvarez.
