The Asian Development Bank (ADB) has approved a $810m loan facility to help Pakistan improve its dilapidated power transmission infrastructure.
The multi-tranche financing facility will allow Pakistan to develop its transmission network, enhance the reliability and quality of energy supply, and meet rising demand for electricity.
It will also help the Pakistani government in making the National Transmission and Despatch Company and Central Power Purchasing Agency (Guarantee) more transparent through reforms.
The loan facility will be delivered in parts between the years 2016 and 2026.
At present, Pakistan is going through shortage in power, which is hampering its economic development.
At the same time, increasing demand for power has made the grid more inefficient coupled with inadequate transmission system.
According to ADB, it is one of the largest development partners in Pakistan, where it has invested in five multi-tranche financing facilities in the energy sector.
The bank has also been assisting the government to resolve energy crisis through Vision 2025. Under the plan, the government of Pakistan will provide uninterrupted power to all and improve demand management.
Asian Development Bank Central and West Asia department energy specialist Megan Wolf said: “A reliable and sustainable power sector is critical to the economic growth and wellbeing of Pakistan.
“Fast implementation of this facility and related reforms to alleviate power shortages will improve the prospects for the economy.”
Image: ADB’s multi-tranche loan to Pakistan to improve energy transmission system. Photo: Courtesy of the Asian Development Bank.