The Asian Development Bank (ADB) has granted $810m loan to Pakistan to help improve the energy supply reliability and to meet increasing power demand.
The loan facility, which will be delivered in tranches and implemented from 2016 to 2026, will be used by the country to upgrade the transmission network, increase transmission capacity, and energy efficiency and security.
ADB Central and West Asia Department energy specialist Megan Wolf said: “Fast implementation of this facility and related reforms to alleviate power shortages will improve the prospects for the economy.”
The funding will also help the government’s plan to develop transparent and efficient power sector by promoting reforms in the National Transmission and Despatch Company, and the sector’s newly established commercial operator, the Central Power Purchasing Agency (Guarantee).
ADB said that the new funding will also help the government’s aim to address the energy crisis through Vision 2025, which aims to increase power generation, provide uninterrupted electricity, and improve demand management.
In 2015, ADB has agreed to provide at least $1.2bn per annum to Pakistan under a new country partnership strategy (CPS) to help improve infrastructure and create new jobs.
The funding, which will run through 2019, will be used by the country to upgrade its power transmission and distribution systems as also modernize infrastructure in the transport, agriculture, and urban services sectors.
Image: Pakistan intends to meet its power growing demand. Photo: courtesy of Asian Development Bank.