Approved for eight publicly owned distribution companies, the $167.2m multitranche financing facility (MFF) targets investment in priority areas to reduce power losses and increase the reliability of the power distribution system.
The investment forms part of ADB’s $810m Power Distribution Enhancement Investment Program approved in 2008.
ADB Central and West Asia Department director general Klaus Gerhaeusser said, ”There is an urgent need for more dependable power distribution and this loan underscores ADB’s commitment to work with the government to resolve the current power crisis.”
The first tranche of the MFF has already been completed and has shown satisfactory results throughout Pakistan, while the second and third tranches are on track and scheduled for completion by September 2015 and December 2016, respectively.
ADB has already provided financial assistance for the modernization of 360 grid stations (66 kV and 132 kV) through the MFF facility, of which 175 stations have already been completed.
The new loan is expected to increase distribution capacity at 282 grid stations, adding 5,021MVA of transformer capacity.
