France signs $83.6m deal for Pakistan hydro plant
Funding agreed for 48 MW Jaggran II hydropower project
France has signed a US $83.6 million deal with Pakistan to fund the 48 MW Jaggran II hydropower project, located north-east of Muzaffarabad. According to the Associated Press of Pakistan, the plant is set to be sited downstream of the existing Jaggran I hydro-plant, a 30.4 MW plant that has been operational since 2000. The project is planned to be commissioned in 2015, and is aimed at alleviating energy shortages in the region, with 1.2 million people currently living in the Muzaffarabad area.
Under the agreement, the French Development Agency (AFD) will provide a soft loan of $83.6 million, in addition to a grant for capacity building and a programme on energy efificiency co-financed with the Asian Development Bank. France pledged to provide Pakistan with $368 million in funds for the country’s development in 2009. With this latest project announcement, it has now invested funds of $261.7 million in the country’s power and water sectors, amounting to 73% of that pledge.
AFD is already supporting the development of renewable energy in Pakistan, with the 22 MW Malakand District project.