ADB Approves $200 Million Loan for Pakistan’s Power Distribution System
The primary aim of this project is to strengthen Pakistan's power transmission system to meet the growing demand for electricity.
ISAMABABD: The Asian Development Bank (ADB) has approved a $200 million loan to support Pakistan’s efforts to modernize its power distribution infrastructure. According to an official statement, the loan will be used to improve the power distribution network in Pakistan, making electricity transmission more reliable and efficient.
The project will initially focus on providing assistance to three key power distribution companies—Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO). These companies will play a vital role in ensuring a sustainable energy supply in their respective regions.
The ADB’s initiative includes the installation of over 300,000 advanced metering infrastructures (AMIs), as well as the setup of data management and communication systems. Additionally, more than 15,000 online transformers will be equipped with monitoring systems. These upgrades will first be implemented in the regions of LESCO, MEPCO, and SEPCO.
The plan also includes the enhancement of four grid stations in SEPCO, where the voltage will be upgraded from 66 kV to 132 kV. In LESCO’s jurisdiction, at least 25 grid stations will be newly constructed or modernized, with new and advanced equipment. Moreover, 11 kV feeders with high loss rates will be replaced with modern cables, and the arrangement of feeder lines will be improved to reduce losses.
Read More: Pakistan Secures $2.75 Billion in Budget Support from ADB for Economic Stability
The primary aim of this project is to strengthen Pakistan’s power transmission system to meet the growing demand for electricity. By upgrading and modernizing the power distribution infrastructure, the project seeks to enhance the capacity of these distribution companies to provide a more stable and sustainable electricity supply to the country.
This move by the ADB is expected to significantly improve Pakistan’s energy sector, ensuring better quality and more reliable power delivery for millions of consumers across the nation.
