Asian Development Bank approved 300mn USD loan to Pakistan

The Asian Development Bank (ADB) has approved a 300 million USD loan to Pakistan. This amount would be used to finance the construction of a 300-megawatt hydropower plant. That will boost clean energy in Pakistan and improve its energy security.

The hydropower plant will add 1,143 gigawatt-hours of clean energy annually to Pakistan’s energy mix. Additionally, enhancing its reliability and sustainability.

The plant will incorporate seismic strengthening and climate-proofing measures. It will be built on the Kunhar river near Balakot City in the northwestern Khyber Pakhtunkhwa Province and commissioned by 2027.

Asian Development Bank Principal Energy Specialist Adnan Tareen said in a statement that the “climate-resilient hydro-power plant will boost the country’s clean energy generation while effectively utilizing its vast water resources.”

The ADB said the Balakot Hydropower Plant will also generate economic activity and improve the local community’s skills. During construction, the ADB said the project will create more than 1,200 jobs. About 40 percent of which will be sourced locally, and provide life skills development for women.

According to ADB, Pakistan is rich in hydropower resources. But only around 16 percent of its identified hydro-power potential has been harnessed. The country’s power sector relies on imported fuel-based power generation and is burdened with a stressed transmission and distribution network.