The funding will also be used to improve access to electricity in the country’s two largest provinces, Khyber Pakhtunkhwa Province (KPP) and Punjab.
A further $750,000 will also be provided in technical assistance grant by ADB for capacity development and improvement of performance monitoring of the program.
The program involves installation of renewable energy power plants including the construction of 1,000 micro-hydropower plants (MHPs) in off-grid areas of KPP.
Additionally, rooftop solar plants will be installed for 23,000 schools and over 2,500 primary healthcare facilities in two provinces and a university in Bahawalpur, Punjab.
ADB Central and West Asia Regional Department senior energy specialist Adnan Tareen said: “The project will help meet the growing energy demand to fuel economic activities and increase access to sustainable and more reliable electricity services particularly for vulnerable communities in KPP and Punjab.
“It will increase opportunities for women and girls to obtain energy services and benefits, particularly on households headed by women.”
In total, the MHPs and solar plants are expected to generate electricity required to power around 1.5 million people in rural areas.
The loan forms part of ADB's plan to double its annual climate financing to $6 billion for Asia Pacific by 2020.
In August last year, ADB agreed to offer at least $1.2bn per annum to Pakistan under a new country partnership strategy (CPS) to help improve infrastructure and create new jobs.
Image: A further $750,000 will also be provided in technical assistance grant by ADB. Photo courtesy of Asian Development Bank.
