The European Investment Bank (EIB) announced a loan worth EUR 100 million to the Islamic Republic of Pakistan as partial finance for renewable energy projects in the country. The investment operation is being co-financed in cooperation with the Asian Development Bank (ADB).

The lending operation has been structured as a framework plan, which grants support from the EIB for a series of investments in Pakistan's renewable energy sector. This is only a part of much larger financial plan set up by the Pakistani government, involving some USD 2.2 billion. This is the fifth lending operation between EIB and Pakistan, the first having happened back in 1993.

EIB made another loan, EUR 170 million, to Iceland for the purpose of devcelopment of a geothermal energy project. The loan was made to Orkuveita Reykjavikur (Reykjavik Energy), which the company will use to expand its geothermal capacity.

The financing is aimed at further development of the Hellisheidi geothermal complex, which will add 90 MW to the existing capacity, but also for a completely new geothermal project also to have 90 MW of installed capacity. The expansions are planned to supply energy for aluminum smelting operations, an existing one, and a new one to be built soon.

[source: European Investment Bank]