Approved on 14 December, the loan will be used to increase distribution capacity of 106 grid stations and set up 14 new grid stations.
ADB extended the loan as a part of the $810m Power Distribution Enhancement Investment Programme to improve reliability of power supply and reduce power losses.
The loan will help used to upgrade 250 grid stations throughout the country, of which 125 grid stations have already been completed.
Asian Development Bank Pakistan Country director Werner E Liepach said the country’s energy sector is suffering due to the low power generation and bottlenecks at the distribution and transmission level.
"ADB has made available four MFFs amounting to $2.9 billion to address these system constraints, and will continue to assist Pakistan in the energy sector," Liepach added.
As a part of the project, 1,881 megavolt-amperes of transformer capacity and new 791kms of transmission lines will be added apart from upgrading 399km of the existing 66 kV and 132 kV transmission lines.
