World Bank to Provide Financial Aid to Pakistan and Madagascar for Renewable Projects

Pakistan will receive over $500 million while Madagascar is slated to receive $40 million credit


The World Bank has promised over $500 million for two renewable energy projects in Sindh, Pakistan. The projects will help in the development of an economic corridor along the Khyber Pass and are expected to accelerate economic activities between Pakistan and Afghanistan.

“The projects will address Sindh’s energy needs through the generation of solar power benefitting the entire province and support trade between Pakistan and Afghanistan through regional connectivity and private sector development along the Khyber Pass corridor,” said Illango Patchamuthu, World Bank Country Director for Pakistan. “

Sindh Solar Energy Project will support independent power producers (IPPs) to build 400 MW of new solar power capacity. The project is expected to cost $100 million and it will also provide grants to private sectors for the installation of solar home systems to 200,000 households.

A World Bank supported Khyber Pass Economic Corridor Project will reduce transport time and cost for traders in Pakistan, Afghanistan, and Central Asia. The $460 million project will also benefit consumers and producers of the area by building better infrastructure and more efficient border crossing systems.

Pakistan has been a member of the World Bank since 1950. According to the bank, it has since then, provided $33.4 billion in assistance.

The World Bank has also approved $40 million credit to Madagascar under International Development Association (IDA) program to develop its electricity sector governance and operations.

The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives.

“The government has shown commitment to transform the public electricity utility JIRAMA. We are equally committed to accompanying them. This project is a vital building block of the World Bank’s long-term engagement to address the sector’s challenges in a holistic manner,” said Coralie Gevers, World Bank Country Manager for Madagascar.

The fund will help the implementation of the performance improvement plan of JIRAMA (Jiro sy rano malagasy), a state-owned electric utility, under the Madagascar Electricity Sector Operations and Governance Improvement Project (EGOSIP).

The World Bank has been a frontrunner for the promotion of clean energy technologies in countries for a sustainable future. The government of India, in November 2017, signed agreements with the World Bank to develop large-scale solar parks. Under the deal terms, the World Bank agreed to provide $100 million in funding to assist in their development.

Earlier, Mercom reported that that World Bank also approved $55 million in financing to expand the use of renewable energy in rural areas of Bangladesh that grid electricity cannot easily reach.

The bank has also approved $180 million in assistance to Kenya to strengthen the financial health of the Kenya Electricity Generation Company Limited (KenGen) and improve private sector financing in the energy sector.

Image credit: World Bank