Pakistan inks $248mn loan agreement with ADB

Secretary EAD, Saleem Sethi and Country Director ADB, Werner E. Liepach exchange documents after signing Loan and Project Agreements amounting to US$248 million in Islamabad on Friday. – APP

 

ISLAMABAD: Pakistan on Friday inked a loan and project agreement worth $248 million with Asian Development Bank (ADB) for power transmission enhancement investment programme.

The project is expected to be completed by the end of 2016.

The power transmission tranche-4 aims to improve energy supply and security by reducing transmission infrastructure bottlenecks and transmission losses and expanding the national transmission grid by connecting generation sources and load centers.

The transmission system is currently unable to cope with existing demand in some areas at peak times. There are voltage control issues and a high risk of instability under certain outage conditions.

Thus, the major aim of the project is enhancement in the capacity of the transmission system by rehabilitation, extension, augmentation and expansion of existing 500 kV and 220 kV network of NTDC, to meet the growing power demand in the country.

Muhammad Saleem Sethi, Secretary Economic Affairs Division (EAD) and Werner E. Liepach, Country Director ADB signed the Loan Agreement here on Friday.

Also read: ADB approves $400mn loan to boost Pakistan's energy sector

The Asian Development Bank has been providing a multi-tranche financing facility (MFF) amounting to $800 million for Power Transmission Enhancement Investment Program since 2006.

The investment program has supported the rehabilitation, augmentation and expansion of the transmission substations, transmission lines of 220 kv and above installation of static var compensator (SVC) equipments.

Tranche-4 is the last tranche of transmission MFF under which four new grid stations of 220 kv would be constructed in D I Khan, Nowshera, Lalian and Chakdara. A new transmission line of 500 kv would also be constructed for dispersal of power from 747 MW Power Plant at Guddu.

Secretary EAD Sethi appreciated ADB’s investments for the Jamshoro Coal Power Project, Budgetary Support Program for energy sector and upcoming Multi-tranche Financing Facility (MFF) for the Smart Metering System amounting to $ 990 million.

Werner E. Liepach, on the occasion, reaffirmed ADB’s support and cooperation for development projects in Pakistan.

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