ISLAMABAD: France will provide a soft loan of Rs11.7 billion to Pakistan for the second phase of a water resources project in Faisalabad that will augment the capacity of the Faisalabad Water and Sanitation Agency (FWSA).

Under the project, 30 million gallons per day of additional clean drinking water will be supplied to citizens through a surface water treatment plant. It is said that the groundwater quality of Faisalabad city is brackish.

The loan from the Agence Francaise De Development (AFD), the French development agency, is the first investment of AFD in water and sanitation sector, thereby opening avenues for more collaboration with the Pakistani government.

Adviser to the Prime Minister on FinanceDr Abdul Hafeez Shaikh witnessed the signing of the `credit facility agreement` worth 94.010 million euros (Rs11.7 billion) by Secretary Economic Affairs Division, Noor Ahmed, Ambassador of France Marc Barety and Country Director of the AFD Jacky Amprou here on Thursday.-Reporter