LONDON, Nov 24 (Reuters) - The European Investment Bank (EIB) and Asian Development Bank will contribute a total $660 million to a $2.2 billion programme to develop renewable energy projects in Pakistan, the EIB said on Tuesday.
The EIB will provide 100 million euros ($149.1 million) while the ADB will contribute $510 million to the multi-year programme set up by Pakistan’s government, EIB said in a statement.
EIB vice-president Carlos da Silva Costa called the effort “a timely and visible contribution to the European Union policy aimed at consolidating democracy in Pakistan and supporting social and economic development in the country.”
The framework agreement also represents the first joint partnership between the ADB and EIB, he added.
An EIB spokeswoman said it was not yet clear what types of renewable energy projects will be funded or if they will seek carbon offsets under a United Nations emissions trading scheme, but she said the projects will have a completion deadline of Dec. 2015. The projects will also get technical support from the ADB, the World Bank and development agencies USAID and Germany’s GTZ.
Both the EIB and ADB have increased their renewable energy funding this year.
In the past two weeks, the EIB announced an 80 million euro loan to the 17-megawatt Gemasolar concentrated solar power plant in Spain and, along with commercial banks RBS RBS.L, Lloyds LLOY.L and BNP Paribas Fortis BNPP.PA, kicked off a 1.4 billion pounds ($2.32 billion) loan programme for British onshore wind farms.
The Asian Development Bank (ADB) in June said it will raise its investment in clean energy to $2 billion a year from 2013 to significantly slow greenhouse gas emissions growth in Asia. [ID:nMAN470304] (Reporting by Michael Szabo; Editing by William Hardy) ((email@example.com; +44 207 542 9242; Reuters Messaging: firstname.lastname@example.org)) ($1=.6708 Euro)($1=.6045 Pound)
Our Standards: The Thomson Reuters Trust Principles.