
France has signed a €120 million (US$129.5 million) Credit Facility Agreement to finance the 128 MW Keyal Khwar hydropower project in Kyber Pakhtunkhwa, Pakistan.
Parties signing the agreement are Dr. Kazim Naiz, Secretary of Economic Affairs Division; H.E. Nicolas Galey, Ambassador of France, and Philippe Steinmetz, country director of the French Development Agency (AFD).
This soft loan will support the Water and Power Development Authority (WAPDA) in its mandate of hydroelectricity sector development in Pakistan, according to a release. The funding will also help enhance the competitiveness of renewable power generation. Such benefits will contribute improving affordability and scaling up the energy supply, AFD said. These will be achieved while also mitigating the impacts of power generation on climate and environment, in line with the policies of the Government of Pakistan.
This funding provided by AFD will help:
Mitigate the flood-affected area of Kyber Pakhtunkhwa and rehabilitation of the infrastructure while building the hydropower project.
Define environmental and social management measures in line with international standards through study grants provided by AFD.
Replace thermal power plants and avoid the equivalent of the emission of 182,000 tons of CO2 per year, once commissioning of the plant is completed in 2028.
Improve the quality of life for 600,000 inhabitants.
The Keyal Khwar hydropower project harnesses the energy potential of a tributary of the Indus River near the city of Pattan. The hydroelectric plant will produce 420 GWh/year, 25% of which will be peak load.
As previously announced, Keyal Khwar is to include a 57-m-tall, 114-m-long concrete gravity dam with integrated low-level gated spillway, ungated auxiliary spillway, underground powerhouse to accommodate two 64 MW vertical Pelton turbine-generators, 7-km-long concrete-lined headrace tunnel, three desander caverns, 626-m-tall steel-lined pressure shaft, 687-m-long tailrace tunnel, hydraulic steel structure equipment, two access roads, and an 11-kV overhead line.
The hydroelectric project will contribute to the government’s strategy to develop green energy and reduce greenhouse gas emissions, in line with the French Government’s agenda of promoting climate-friendly projects and with the French pledge and commitments announced at the International Conference on Climate Resilient Pakistan on Jan. 9, 2023.