ADB provides $245m to improve Pakistan's power distribution systems

The Asian Development Bank (ADB) and the government of Pakistan Monday signed an agreement to invest 245 million U.S.dollars to improve the country's power distribution systems, the ADB said. Nargis Sethi, secretary of Economic Affairs Division of Pakistan and Dr. Werner E. Liepach, ADB's country director for Pakistan signed the agreement. "The investment will help upgrade Pakistan's aging power distribution infrastructure, allowing power generated to reach the consumers," Werner Leapach said. "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," he added. The loan is meant for Tranche-3 of the Power Distribution Enhancement Investment Program under the Multi-tranche Financing Facility (MFF). The MFF was approved in 2008 to invest 810 million dollars in priority areas to improve distribution systems and help Pakistan meet its pressing energy needs. The program aims to rehabilitate, augment and expand power distribution systems and remove system bottlenecks. "The project will add 1,881 MVA of transformer capacity, 791 km of new transmission lines and up-gradation of 399 km of the existing transmission lines, which will bring stability in the distribution network," said Adnan Tareen, senior project officer ( for energy) at ADB's Pakistan office. "Success of the project depends on effective and timely implementation; therefore, we will continue to focus on timely completion of the power distribution enhancement projects. I urge the agencies and distribution companies involved to make sure that the targets are achieved within the implementation timeframe," said Nargis Sethi. The first tranche of 252 million dollars and second tranche of 242 million dollars were released on Jan. 13, 2009 and Jan. 28, 2011, respectively. Under the existing four MFFs, the ADB is investing 2.9 billion dollars in the Pakistan's power sector over a 10-year period (2008-2017).