The loan is designed for Tranche-3 of the power distribution enhancement investment program under the multi-tranche financing facility (MFF), which was approved in 2008 for investment of $810m in priority areas to improve distribution systems and help Pakistan address its pressing energy requirements.
ADB Pakistan country director Dr. Werner E. Liepach said the investment will help upgrade Pakistan’s aging power distribution infrastructure enabling the generated power to reach the consumers.
”These power projects to be completed by June 2016 will augment the network and improve performance of the power distribution system, which is critical to increase the overall energy efficiency and to bridge the widening energy gap in Pakistan,” Liepach added.
The power distribution enhancement investment program intends to rehabilitate, boost and expand power distribution systems and remove system bottlenecks.
ADB Pakistan office Energy senior project officer Adnan Tareen said the project will add 1,881 megavolt-amperes (MVA) of transformer capacity, 791km of new transmission lines and up-gradation of 399km of the current transmission lines, bringing stability in the distribution network.
Comprising $252m and $242m, the first and second tranches were released in January 2009 and January 2011 respectively.
ADB is investing $2.9bn in Pakistan’s power sector over a ten year period (2008-2017) under the four existing MFFs.
