ISLAMABAD: The European Investment Bank (EIB) on Wednesday expressed keen interest in financing the upgrade of the National Highway (N-5 from Karachi to Torkham and a major water project in Karachi) and committed £50 million ($55.5m) for the rehabilitation of a hydropower project in Khyber Pakhtunkhwa.

As a visiting delegation of the EIB, led by Edvardas Bumsteinas, head of Division for Asia & the Pacific, showed interest in being part of significant infrastructure projects financed by major multilateral lenders like the World Bank, Asian Infrastructure Investment Bank and Asian Development Bank. Pakistan shared a portfolio of about 12 such projects for investment opportunities, including in power transmission and railways sectors.

In a statement, the Ministry of Economic Affairs said that during a technical session with a team led by its Secretary Kazim Niaz, a list of 12 potential projects for co-financing was shared with the visiting delegation and discussed at length.

The economic affairs minister, who also had a meeting with the delegation that also included key representatives from the EU Delegation in Pakistan, “expressed hope that the EIB would consider funding some of these key projects to support Pakistan’s development agenda”, a statement said.

“Mr Edvardas Bumsteinas responded positively, indicating that he would discuss these projects with senior officials at the EIB HQ to explore possible funding opportunities,” the statement said.

The two sides hoped the ongoing engagement would help explore various avenues for close collaboration between the EIB and Pakistan. The minister highlighted that EIB’s priority areas such as climate action and high-impact global investments in water, energy and transport sectors aligned with Pakistan’s development needs. He welcomed the EIB’s £50 million loan for the rehabilitation of the Warsak Hydropower Project, noting its critical role in restoring the plant’s capacity.

The statement said the EIB delegation “has shown interest in several key projects including those financed by other international financial institutions such as the World Bank and the Asian Development Bank and Asian Infrastructure Investment Bank”.

They are particularly keen on exploring opportunities to provide loans for a range of significant initiatives in Pakistan, the statement said, adding that among these included the N-5 road widening project, which aims to improve road connectivity and transportation efficiency, particularly in the flood-hit areas.

Additionally, the delegation was interested in water filtration and industrial water recycling projects in Karachi, which are vital for addressing urban water supply challenges, and in renewable and hydropower energy projects, which align with global trends towards sustainable energy solutions.

“This interest underscores the EIB’s commitment to supporting critical infrastructure and development efforts that are essential for Pakistan’s economic growth and sustainable development”, the statement said. It added that the minister requested the mission to explore extending technical and financial assistance to National Transmission Despatch Company and Pakistan Railways.

Published in Dawn, September 5th, 2024