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Home / Uncategorized / $800m MFF: Pakistan, ADB ink accord for $248m loan to improve power transmission system
$800m MFF: Pakistan, ADB ink accord for $248m loan to improve power transmission system

$800m MFF: Pakistan, ADB ink accord for $248m loan to improve power transmission system

ISLAMABAD: Described as Tranches 4 of the power transmission enhancement investment programme, Pakistan and Asian Development Bank (ADB) signed loan and project agreements amounting to $248 million to improve power distribution infrastructure.

The Tranche 4 is the last tranche of Multi-tranche Financing Facility (MFF) amounting to $800 million for power transmission enhancement investment programme since 2006.

Under the new grid stations of 220 kv will be built in DI Khan, Nowshera and Chakdra districts of KPK while a grid station in Lalian, district Chiniot in Punjab. A new transmission line of 500 kv will also be constructed for supply of power from 747MW power plant at Guddu.

Economic Affairs Division (EAD) Secretary Muhammad Saleem Sethi and ADB Country Director Werner E. Liepach signed the loan agreement. The loan aims to improving energy supply and security by reducing transmission infrastructure bottlenecks and transmission losses and expanding the national transmission system by connecting generation sources and load centres.

The investment programme has supported the rehabilitation, augmentation and expansion of the transmission substations, transmission lines of 220 kv and above and installation of static var compensator (SVC) equipment.

On the occasion, the secretary lauded the ADB’s investments in the Jamshoro coal power project, budgetary support programme for the energy sector and upcoming Multi-tranche Financing Facility (MFF) for the smart metering system amounting to $990 million.