ISLAMABAD : The Agence Française de Développement (AFD) has shown willingness to extend Euro 50 million loan to National Grid Company (NGC), erstwhile NTDC for 220kV Gujranwala Substation & T-lines and additional transformers, Newzshewz has learnt officially.
According to AFD the technical and financial progress of projects already scheduled under the current procurement plan. These elements are important for estimating the amount of the available balance and the overall project implementation schedule. The remaining amount will only be definitively known once all the contracts have been signed, which is not the case at present, and to which a margin for contingencies will have to be added.
” On the basis of the current situation, it seems prudent to consider a balance of around €50 million, which would cover all or part of the Gujranwala project,” said Marc-Antoine LECLERCQ, Country Director AFD.
According to sources, AFD has conveyed that its final decision would be subject to successful appraisal of the project and fulfilment of the Environmental & Social (E&S) studies and plan. Also particular attention must be paid to
environmental and social issues; an environmental and social impact, study must be carried out in accordance with international standards, and land acquisition procedures already obtained by NGC must be audited to ensure that they are in line with AFD standards.
The French Agency further stated that appointment of consultants for the projects be hired on the basis of experience of projects currently being implemented. The consultant, could be financed from the AFD loan, would be involved from the drafting phase of the bidding documents, and would then support the analysis of bids and monitoring during implementation. It is important that the consultant be the same for all these phases, to ensure project continuity and compliance with implementation deadlines.
Other pre-conditions of the loan are ;(i) an overall implementation schedule must be provided ;(ii) EAD has to be taken on board for an amendment to the CPK 1065 financing agreement must be signed to include this new project. In particular, it may be necessary to adjust the deadlines already set out in this document, such as the deadline for disbursement ;(iii) any modification of the financing plan may lead to a revision of the financial conditions ; and (iv) approval of the PC-1/Concept clearance by the GoP (if necessary).
AFD, in a letter to the NGC to proceed further for further necessary studies and internal approvals.
