The Asian Development Bank (ADB) has agreed to loan US$510M to Pakistan for a range of renewable energy developments.
In a statement, ADB said the first project under the multi-tranche finance deal would be to finance a set of small to medium hydro power plants in the North West Frontier Province and Punjab with loans of up to US$180M and US$150M, respectively.
While details were not disclosed about the initiatives in those provinces, last month ADB said it was assessing loans totalling US$250M for parts of the ‘Renewable Energy Development Sector Investment Programme’ in the country.
Under the programme, projects proposed for the North West Frontier province are Dharal Khwar (36.6MW), Ranolia Khwar (11.5MW) and Machai Khwar (2.6MW). Smaller projects are proposed in Punjab, including Marala, Chianwali, Deg Outfall, Okara and Papkatan.
ADB added that other provinces can request funding for renewable energy projects totalling US$170M under the arrangement.
Peter Fedon, ADB’s country director for Pakistan, said: ‘Small to medium hydro power plants offer the greatest renewable energy potential for Pakistan, while possibilities also exist in promoting greater use of wind, solar and biomass power.’
The loan will have a term of 10 years, to 2017, the bank added.