Islamabad: The World Bank has agreed to provide USD 450 million to assist Pakistan in converting to clean renewable energy – as the country works to reduce its dependence on fossil fuel, according to a news source published on September 26.
The project seeks to convert to domestic clean resources by investing in renewable energy generation – using both hydropower and solar-powered sources in the Upper Dir and Swat districts of the Khyber Pakhtunkhwa (KP). The cost estimation to develop this project is USD 727 million – out of which USD 450 million is being provided by the World Bank. The WB loan includes a loan of worth USD 200 million from the International Bank for Reconstruction and Development (IBRD) and USD 250 million credit from the International Development Association (IDA).
Furthermore, it is reported that this project, titled ‘Khyber Pakhtunkhwa Hydropower and Renewable Energy Development’ will offer low-carbon and cheaper power. This project will also contribute to the socioeconomic development of the communities residing near the development sites.
The World Bank country director for Pakistan Najy Benhassine has said that this initiative will support Pakistan’s aim to become a low-carbon, renewable energy-reliant economy by 2030 and will facilitate renewable energy initiatives that are “technically sound, environmentally and socially sustainable, and investment-ready.”