Denmark will give the wastewater treatment plant in Faisalabad a concessional loan.

For the Eastern Wastewater Treatment Plant (33 MGD) of Faisalabad City – Phase I, the federal government and Danida Sustainable Infrastructure Finance (DSIF), Denmark, signed a deal, according to the release.

Tina Kullerup Hausen, managing director of DSIF, Jesper B. Petterson, managing director of Danske Bank, and Muhammad Humair Karim, secretary of the Ministry of Economic Affairs, all formally signed the loan agreement.

The announcement claims that the project is especially noteworthy because it marks Danida’s first, long-awaited involvement in Pakistan’s development sector. Additionally, it is the first loan made possible by the 2022 Framework Agreement between Denmark and Pakistan.

The project is to improve Faisalabad’s wastewater treatment infrastructure in order to promote sustainable urban development. It is anticipated to support resilient urban infrastructure, public health, and environmental preservation.

“The government’s dedication to enhancing collaboration with development partners in tackling important urban issues is demonstrated by this initiative,” the statement continued.