ISLAMABAD, Sept 14: The European Investment Bank has shown its willingness to invest 100 million euros for the construction of 128MW Keyal Khawar hydropower project in Khyber Pakhtunkhwa.

Ambassador of European Union Lars-Gunnar, during a meeting with Finance Minister Ishaq Dar here on Saturday, said the European Union supported policies of the government and was committed to expanding economic relations with Pakistan.

The Keyal Khawar hydropower project which is estimated to cost 230 million euros is already being partly financed by the German Bank KFW, to the extent of 97 million euros.

Senator Dar said that one of the top priorities of the government was to increase power generation and produce cheap electricity in the country.

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

Mr Dar praised the assistance being provided by the European Union in the energy sector and expressed the confidence that the EU would also give assistance in other energy projects.—Reporter