European bank eyes funding Pakistan renewables including hydro

The European Investment Bank (EIB) is considering a proposal to provide 90 million euros (US$114.1 million) to Pakistan to promote renewable energy including hydropower.

EIB said it has under appraisal a proposal to provide a 90 million euro share of a total 420 million euro (US$532.4 million) investment program for renewable energy sources including wind, solar, biomass, and medium-sized run-of-river hydroelectric projects.

The program would be carried out in context of co-financing with the Asian Development Bank (ADB), which already supports Pakistan’s renewable energy sector. In 2007, ADB lent Pakistan US$510 million under a renewable energy development sector investment program for small hydro project “clusters” in North West Frontier Province and Punjab Province. (HNN 8/25/08)

EIB said the proposed operation would support projects that mitigate climate change, a European Union (EU) priority. It also is to reduce poverty through electrification and creating jobs in remote and rural areas.

The bank said most projects financed are expected to be small with limited environmental effects. Projects are to be prepared in conformance with national and EU environmental standards.

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