ADB to provide $284 million to Pakistan for improving power transmission network

 

ISLAMABAD: The Asian Development Bank (ADB) and the Government of Pakistan on Thursday signed loan and grant agreements worth $284 million to improve Pakistan’s power transmission network.

A loan and grant agreements was signed between the Government of Pakistan and ADB at a ceremony in Islamabad by the ADB Country Director for Pakistan Xiaohong Yang and Secretary of the Economic Affairs Division Noor Ahmed, according to a press release by the ADB. 

Speaking at the agreement signing Yang said that the project will help provide a more stable and secure electricity supply, so people and businesses can continue their productivity and contribution to the economy

She added, “ADB is working with the government and the private sector to further develop Pakistan’s power supply chain, including expanding the power transmission network.”

The agreement is the third tranche of a multitranche financing facility (MFF) under the ADB-supported Second Power Transmission Investment Program. The MFF aims to develop a stronger, smarter, greener, and more climate resilient power transmission system in Pakistan.

The tranche is comprised of a $280 million loan from ADB’s ordinary capital resources and a $4 million grant from the High-Level Technology Fund (HLTF) to help the National Transmission & Dispatch Company Limited (NTDC) meet the country’s electricity demand of 1,150 megawatts efficiently and reliably. To achieve this, it will deploy high-level technologies and climate-resilient transmission systems through load centers in Punjab Province.

The investment in the power transmission network—the first investment of its kind by ADB in Pakistan—will pilot large-scale, grid-connected battery energy storage system, which will help NTDC comply with national standards and best practices in power distribution. It will also enhance the NTDC’s capacity to dispatch intermittent renewable energy. This investment will also facilitate the development of ancillary services market which is an important component of the future competitive power market.

“To achieve this it will deploy high-level technologies and climate-resilient transmission systems through load centers in Punjab Province, adding that the investment in the power transmission network was the first investment of its kind by ADB in Pakistan,” Yang added.