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Reinforcing the power grid in the Karachi region
Project
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Signature date
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Location
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Pakistan
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Financing tool
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Financing amount (Euro)
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--
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Financing details
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USD 31.4m loan
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Customer
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K-ELECTRIC
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Type of customer
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Company
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Country of headquarters
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Pakistan
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Project number
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PPK1029
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Environmental and social ranking
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A
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Climate co-benefits
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Project with climate co-benefits
This information is given at the time of signature, without prejudice to any developments in the operation/project.
Proparco is helping K-Electric upgrade its infrastructure and is thereby contributing to improving access to electricity.
Client presentation
K-Electric is the only vertically integrated utility in Pakistan’s energy sector. K-Electric produces, transmits and distributes electricity to over 3 million clients in and around Karachi.
Project description
The project involves a USD 100m credit line (including USD 31.4m by Proparco) to K-Electric. This Friendship Facility operation, with FMO as lead arranger, will finance the extension and rehabilitation of K-Electric’s electricity transmission and distribution infrastructure. It will thereby reduce T&D losses and improve the security and reliability of its grid. This project is contributing to AFD Group’s climate objectives through 81% of the amount committed by Proparco.
Project impact
The project will help improve access to electricity in the Karachi region (an estimated 3,400 additional clients over the next 5 years due to the project) and will contribute to the fight against climate change (9,000 tCO2e avoided every year throughout the project lifespan). It will also support employment (55,700 jobs created and/or maintained over the next 5 years). The project should thereby contribute to SDGs 7 (“Affordable and clean energy”), 8 (“Decent work and economic growth”), 9 (“Industry, innovation and infrastructure”) and 13 (“Climate action”).