The Asian Development Bank (ADB) and the Government of Pakistan have signed loan and grant agreements worth $284m to upgrade the country’s power transmission network.
Image: ADB Country Director for Pakistan Xiaohong Yang (right) and Economic Affairs Division Secretary Noor Ahmed (left) after the signing. Photo: Courtesy of Asian Development Bank.
This agreement is the third tranche of a multitranche financing facility (MFF) under the ADB-supported Second Power Transmission Investment Program, ADB stated. The aim of the MMF is to develop stronger, smarter, greener and more climate resilient power transmission system in the country.
ADB Pakistan country director Xiaohong Yang said: “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.
“ADB is working with the government and the private sector to further develop Pakistan’s power supply chain, including expanding the power transmission network.”
This tranche includes $280m in loan from ADB and $4m in grants from the High-Level Technology Fund (HLTF). This loan will support the National Transmission & Dispatch Company (NTDC) in meeting the country’s electricity demand of 1.15GW. To achieve this target, it will use high-level technologies and climate-resilient transmission systems through load centers in Punjab Province.
This claimed to be the first of its kind investment by ADB in Pakistan. The country will pilot large-scale grid-connected battery energy storage system, which is expected to help the national transmission company to comply with national standards and best practices in power distribution.
It will also improve NTDC’s capacity to provide intermittent renewable energy.
Yang continued saying: “The capacity building component of Tranche 3 will support the government in preparing an energy storage system roadmap to leverage the country’s rich indigenous renewable energy potential for longer term energy security.”
In March, the development bank provided a loan of $260m to improve Pakistan’s power transmission network. This agreement is part of the Second Power Transmission Enhancement Investment Program to improve coverage, reliability, transparency and quality of the power transmission service in the country.
This will be done by expanding the 220kV transmission network in Sindh and Balochistan provinces and upgrading the supervisory control and data acquisition (SCADA) and revenue metering systems (RMS) in the country.