The Pakistan government has signed a US$510mn multi-tranche loan with the Asian Development Bank (ADB) for the development of renewable energy projects.
The initiative is the first of its kind in Pakistan, and is an effort to widen the range of energy sources supporting the company. Pakistan is mainly dependent on oil imports, and the cost of these imports is accounting for a large share of the country’s total import bill.
Demand for power is also beginning to outstrip supply, with estimates suggesting that electricity requirements by 2030 will hit 162,590MW, compared to requirements of 15,000MW in 2005.
Pakistan’s current renewable energy power output accounts for only 180MW of the country’s total output.
The first project to be funded via ADB’s financing package is the development of a set of small to medium hydropower plants in Northwest Frontier Province and Punjab. The governments of these two regions are expected to borrow up to US$180mn and US$150mn.