ADB okays $250 million loan to strengthen power transmission in Pakistan

• Project aimed at expanding high-voltage transmission network
• Regional lender’s aid to reduce transmission losses.
• Key objective to improve management of transmission system.

The Asian Development Bank (ADB) has approved $250 million in terms of loan for Pakistan to strengthen the power transmission system in the country that continues to undergo electricity shortages.

The aid will “help deliver reliable electricity in Pakistan by expanding and improving the power transmission network in the country’s Punjab and Khyber Pakhtunkhwa provinces,” an official statement issued by the ADB read.

“ADB’s Power Transmission Strengthening Project will help reinforce the stability of the national grid by increasing its transmission capacity,” it added.

The regional lender’s project is aimed at expanding the high-voltage transmission network to close 500 kilovolt (kV) and 220kV transmission lines loops and reduce transmission losses in Lahore city in Punjab by replacing old transmission lines.

“Reliable power supply is essential to inclusive, sustainable economic growth, and it will also provide economic opportunities to rural communities,” said ADB Director General for Central and West Asia Yevgeniy Zhukov.

“We are pleased to continue supporting Pakistan in its efforts to achieve energy security while improving energy efficiency,” he added.

The project also will complement ADB’s ongoing support to the National Transmission & Despatch Company Limited (NTDC) aimed at ensuring energy security, climate resilience, and increased transmission capacity to deploy sufficient, reliable, clean, and cost-effective energy.

Another key objective of the project is to improve the management of the national transmission system of the country.

Aside from strengthening power transmission, ADB’s project will also enhance the project and financial management of NTDC, as well as its capacity to incorporate climate resilience in planning and operations.

“To promote gender equality and women’s involvement in the energy sector, ADB will develop guidelines for mentorships, conduct awareness campaigns, establish childcare centres, and provide technical training to female staff in the NTDC,” said ADB Senior Energy Specialist Takhmina Mukhamedova.

“This project also includes livelihood skills development for women in the project areas to improve their economic opportunities, and training for local communities to enable them to respond to climate-induced natural hazards.”