ISLAMABAD
The Asian Development Bank (ADB) will invest $167 million in upgrading Pakistan’s ageing power distribution systems.
An agreement was signed by Economic Affairs Division Secretary Nargis Sethi and ADB Country Director for Pakistan Werner E Liepach on Wednesday.
“An efficient power distribution system is crucial to allow the power produced reach the consumers. The investment will help rehabilitate Pakistan’s ageing power distribution infrastructure waiting for up gradation.” said Werner Leapach.
The loan is meant for Tranche-4 of the Power Distribution Enhancement Investment Programme under the Multi-tranche Financing Facility (MFF).
The MFF was approved in 2008 to invest $810 million in priority areas to improve distribution systems and help Pakistan meet its pressing energy needs.
The programme aims at rehabilitating augment and expand power distribution systems and remove system bottlenecks.
The power projects to be completed by December 2016 will augment the network and improve performance of the power distribution system, which is essential to increase the overall efficiency of the networks and to bridge the widening demand and supply gap of power in Pakistan.
“This project is to upgrade transformer capacity at 284 grid stations which will bring stability in the power distribution network”, said Adnan Tareen, ADB’s Energy Specialist.
Financing for the first tranche of $252 million, second tranche of $242 million, and third tranche of $ 245 million have already been provided and implementation is going on in more than 400 sub-projects which upon completion will help reduce overloading of the system and improve power supply to consumers.
