Construction of the 128MW Keyal Khwar hydropower project in Pakistan has received further financial support this week with the approval of a EUR100 million loan from the European Investment Bank (EIB).
The long-term loan agreement was signed on 17 February by EIB Vice-President Magdalena Álvarez Arza and Ms Nargis Sethi, Secretary of Pakistan's Economic Affairs Division.
The Keyal Khwar run-of-river project is being built by the Water and Power Development Authority (WAPDA), with construction having started in January 2013. The project - which will take four years to build - will feature a 1.5ha reservoir for daily regulation.
"The EIB is pleased to be able to support Pakistan in this important sector, addressing the increased demand of energy in the country," said Vice-President Magdalena Álvarez Arza. "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."
The project is also receiving financial support from KfW and has been structured under the mutual reliance initiative. This collaborative approach will make it possible to exploit synergies between the two financial institutions.
Keyal Khwar is the fifth project supported by the EIB in Pakistan.
Photo: Ms Nargis Sethi, Secretary of Pakistan's Economic Affairs Division and EIB Vice-President Magdalena Álvarez Arza at a ceremony in Islamabad (Credit: European Investment Bank)
