Financing from the French Development Agency will allow for the construction of a pair of hydroelectric projects that will add a combined 785 MW of power to Pakistan's grid.
The US$84 million credit facility agreement will help develop the 740-MW Munda and 35-MW Harpo hydropower plants, located in the Khyber Pakhtunkhwa and Gilgit Baltistan regions, respectively.
Pakistan's Ministry of Water and Power assigned the Munda Dam project to Pakistan's Water and Power Development Authority in 2010 for detailed engineering design and construction. It was decided in 2007 that Munda would be a multi-purpose project, to supply water for irrigation, to mitigate flooding, and to generate power.
The European Union also sought pre-qualification in April 2012 to perform a climate change adaptation study and an impact assessment study of the project, which will be built on Pakistan's Swat River.
Meanwhile, HydroWorld.com reported in January that the German Ministry for Economic Cooperation and Development had agreed to provide Pakistan a $27.3 million loan for the Harpo project via the KfW Development Bank.
Pakistan's Water and Power Development Authority (WAPDA) began sought expressions of interest for engineering design and tender preparation for the plant in May 2009.
Harpo will be located on the Harpo Lungma River, which is a tributary of the Indus River.
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