Germany, Pakistan sign financing agreement for hydropower, renewable energy

ISLAMABAD: German development bank (KfW) has announced that it will provide grant assistance worth € 12.5 Million to the Government of Gilgit-Baltistan and Agha Khan Rural Support programme.

Mr. Muhammad Hammad Azhar, Federal Minister for Economic Affairs witnessed the signing of Financing Agreement for Hydropower Renewable Energy-II.

Dr. Syed Pervaiz Abbas, Secretary, Economic Affairs Division and Mr. Wolfgang Moellers, Country Director, German Development Bank (KfW) signed the Agreement.

The project has two components i.e the Hydropower component that will be implemented by the Water & Power Department, Government of Gilgit-Baltistan; and, the Biodiversity component which will be implemented by the Agha Khan Rural Support Program.

The implementation of HRE-II in Gilgit-Baltistan will contribute to the provision of electricity for the population of Hunza and Nagar through utilization of its abundant water resources, which will improve living standards and livelihoods of the local population and the region.

Mr. Muhammad Hammad Azhar, Federal Minister for Economic Affairs thanked the German Government for the grant assistance which will be helpful in addressing the increasing energy needs of the region while employing environment friendly solutions. He said that these initiatives are truly commendable as they are geared to impact the lives of the common man.

The Government of Pakistan values this support of the German Government to invest in such schemes and looks forward to further strengthening future cooperation.

Mr. Wolfgang Moellers, Country Director, KfW while talking on the occasion said that soon the population of Gilgit-Baltistan will have access to the green and sustainable energy, which will contribute towards socio-economic uplift of the masses. This will also help to create more jobs and promote tourism in the area.