Pakistan and Denmark have signed a concessional loan agreement for the construction of an important wastewater treatment plant (WWTP) in Faisalabad to address urban environmental challenges.
The agreement was signed by Muhammad Humair Karim, secretary of the Ministry of Economic Affairs, and Tina Kullerup Hausen, managing director of Sustainable Infrastructure Finance (DSIF).
The project, entitled “Construction of the eastern wastewater treatment plant (33 mg) of Faisalabad City Phase-I”, will have a treatment capacity of 200,000 cubic meters per day. Its objective is to contribute to sustainable urban development by significantly improving wastewater treatment facilities in the city, thus supporting environmental protection, public health and resistant urban infrastructure.
Read: Pakistan, Denmark Push the $ 2B association
The project is financed through a DSIF concessional loan, which offers very favorable terms to support sustainable infrastructure. Such loans have a significant concession, a measure of how much more generous are that standard market loans, 35%. This makes financing terms considerably more soft and more affordable for Pakistan.
The firm demonstrates the commitment of the Pakistan government to strengthen cooperation with development partners to address urban urban challenges
Denmark is renewable energy leadership, and is actively following developments in Pakistan’s energy sector. Danish engineering companies and contractors are expected to be known for their extensive experience in the construction of water treatment plants, including those that are executed with green energy, are expected to participate in the project.
Read more: Pakistan to take advantage of Danish mining technology
DSIF is also preparing to finance 75% of a feasibility study for a wastewater treatment plant proposed in Kattar Bund in Lahore.
In early April, both countries reaffirmed an association of $ 2 billion to modernize the maritime infrastructure of Pakistan, improve port operations and promote sustainable practices, during a meeting between the Federal Minister of Maritime Affairs, Junaid Anwar Chaudhry and the Danish ambassador Jakob Linulf.
It is the first intervention of the Denmark development sector in Pakistan after a partial stop. It is also the first loan ended under the framework agreement of Pakistan-Denmark, concluded in 2022.
The new wastewater plant in Faisalabad represents a specific step in the growing collaboration of green infrastructure between the two nations.
