Pakistan has signed loan deals worth $720 million with the World Bank and the Asian Infrastructure Investment Bank (AIIB), with part of the funding to be used to support the 1410MW Tarbela 5th Extension hydropower project.

According to reports from The Nation, the World Bank will loan $390 million towards the $823.5 million project, with AIIB to loan $300 million. The remainder will then be funded by WAPDA ($124.5 million) and National Transmission and Dispatch Company ($9 million).

The project involves the installation of 3 x 470MW units on the existing Tunnel-5 at Tarbela Dam, increasing the total capacity at the dam to 6298MW.

The remaining funding in the loan agreements signed this week will support funding in the governance and policy sectors.