ISLAMABAD: French Agency for Development (AFD) has extended Euro 94.01 million soft loan to Pakistan for extension of water resources, a statement said on Thursday.
Adviser to the Prime Minister on Finance, Revenue and Economic Affairs, Dr. Abdul Hafeez Sheikh, witnessed the signing ceremony of the Credit Facility Agreement worth Euros 94.010m for Extension of Water Resources Faisalabad phase-II Project, signed by Secretary, Economic Affairs Division (EAD), Noor Ahmed, French Ambassador to Pakistan, Marc Barety, and Country Director of the French Agency for Development (AFD), Jacky AMPROU.
AFD will provide a soft loan for the project for a period of 20 years including a grace period of 6 years at interest rate of 6-month Euribor with a spread of 52 basis points.
Groundwater quality of Faisalabad city is brackish.
The proposed project will augment Faisalabad Water and Sanitation agency capacity to provide 30 MGD of additional clean drinking water to citizens of Faisalabad through surface water treatment plant.
France through the French Agency for Development is providing technical and financial support in energy and urban development sector in Pakistan.
This project is AFD’s first investment in water and sanitation sector opening avenues for more collaboration with government of Pakistan.
Earlier, the Ambassador called on the Adviser and exchanged views on matters pertaining to enhancement of bilateral cooperation.
Highlighting the significance of the project, the Ambassador informed that the project would provide better service and clean drinking water to the population of Faisalabad.
The project will contribute towards the Government of Pakistan’s strategy for improving the urban services and health conditions. Both the sides stressed the need for diversification of trade and promoting economic relations between the two countries.
Adviser to the Prime Minister on Finance and Secretary, EAD thanked the French Government and AFD for extending the financial assistance to Pakistan.