ISLAMABAD – Pakistan and World Bank have signed an agreement worth US$100 million for “Sindh Solar Energy Project” in Islamabad, the Radio Pakistan reported on Wednesday.
The project is aimed to increase solar power generation and access to electricity in the Sindh province.
The project will support the deployment of solar power in the southeastern Pakistani province, spanning three market segments: utility-scale, distributed generation, and at the household level.
The International Development Association will extend financing of US$100m for the project and the Government of Sindh will contribute US$5m.
Economic Affairs Division Secretary Noor Ahmed signed the financing agreement on behalf of the Government of Pakistan while Sindh Energy Dept Secretary Musadiq Ahmed Khan signed the project agreement on behalf of Sindh government.
World Banks Country Director Patchamuthu Ilangovan signed the financing and the project agreements on behalf of International Development Association.
The financing agreement was followed after loan approval by the Washington-based lender’s board of directors, signed seven months ago. Pakistan will return the loan in 30 years with a five-year grace period.
In a presentation, given by the power secretary to the Public Accounts Committee showed PTI led government in Pakistan is working on new clean energy policy, aiming to increase the share of clean energy in total energy mix from 5% to 25% in the next six years and to 30% by 2030.
