ISLAMABAD : The European Investment Bank (EIB) will invest 100 million Euros in the construction of a 128MW Keyal Khawar Hydro Power Project in Khyber Pakhtunkhwa on concessional terms. European Union Ambassador Lars-Gunnar Wigemark said this during a meeting with Finance Minister Mohammad Ishaq Dar here. The Keyal Khawar Hydropower Project, which is estimated to cost 230 million Euros, is already being financed by German Bank KFW to the extent 97 million Euros.

The ambassador told the Finance Minister that the EU supported the policies being pursued by the present government and was committed to expand economic ties with Pakistan.

The Finance Minister, on the occasion, said one of the top priorities of the government was to increase power generation and produce cheap electricity.

Under the new energy policy, the government plans to set up power generation units using low cost fuels, including renewable resources, he added. 

He appreciated the assistance being provided by the European Union in the energy sector and hoped that the EU would also extend its assistance in other energy projects.