United States Agency for International Development and GTZ are the bilateral development agencies in the said project.
The EIB Vice-President Carlos da Silva Costa said that this operation “is definitely a timely and visible contribution to the European Union (EU) policy aimed at consolidating democracy in Pakistan and supporting social and economic development in the country. It also constitutes the first mutual reliance arrangement between the ADB and EIB. This is indeed a trail-blazing approach and I hope it is the first of many such operations, bearing testimony to the excellent cooperation.”
The investments will be part of the multi-year program to develop the renewable energy sector in Pakistan set up by the country’s government, for a total amount of $2.2 billion.
EIB-ADB collaboration in the project will make it possible to exploit synergies between the two financial institutions and will minimise the transaction costs to the borrower. Under the co-financing agreement signed between the EIB and ADB, the EIB will be delegating to the ADB a series of tasks concerning loan administration and project monitoring. This innovative approach is in line with the principles of the 2005 Paris declaration on aid effectiveness, and with the 2008 Accra Agenda for Action, which call for a reduction in the fragmentation of aid by improving the complementarity of donors’ efforts and the division of labour among donors.
