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Supporting Reforms For A Sustainable Energy Sector

Project

Energy
Project start date
Status

Ongoing

Project duration
20 years
AFD financing amount
600000000 €
Country and region
Pakistan
Location
Pakistan
Type of financing
Grant
Beneficiaries
Islamic Republic of Pakistan
Type of beneficiary
State
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The project aims at improving access to energy and the financial sustainability of production by promoting transparency and accountability in the sector. It also provides support for the actions taken by the national authorities who have a plan to reduce greenhouse gas emissions in the power sector.

Context

In 2013, the Pakistani authorities adopted a power sector reform programme aimed at increasing installed capacity of national origin (hydroelectric and thermal energy) and improving the sector's performance. The ADB-led sector-budget-support programme is intended to support the government in implementing these reforms. AFD has decided to participate in financing the programme's third phase in order to contribute to the achievement of SDG Goal 7 (Access to affordable, safe, sustainable and modern energy for all). To this end, the project includes the financing of technical assistance to support actions promoting the development of renewable energy projects.

Description

The programme seeks to improve access to energy and the power sector's financial sustainability through better management of tariffs and subsidies; to improve the management of public utilities in the power sector by opening-up energy markets to the private sector; and to increase the sector's performance while securing power supply and promoting transparency and accountability in the sector.

Impacts

  • Amélioration de l’approvisionnement et de la qualité de service,
  • Renforcement des capacités de gestion des acteurs du secteur (opérateurs et institutionnels),
  • Atténuation du changement climatique par la réduction des émissions de gaz à effet de serre.