CDWP approves Rs58.8bn energy projects for improved power distribution

ISLAMABAD: The Planning Commission’s Central Development Working Party (CDWP) has approved three major development projects in the energy sector, with a combined cost of Rs58.857 billion.

Chaired by Minister for Planning Ahsan Iqbal, the forum approved the first project, the “Power Distribution Strengthening Project (SEPCO),” worth Rs9,014.360 million. This project, proposed for financing through the Asian Development Bank (ADB), has been recommended to the Executive Committee of the National Economic Council (ECNEC) for further consideration. It includes the conversion of four 66 kV grid stations into 132 kV grid stations, the installation of 50,000 advanced metering infrastructure (AMI) meters on three-phase meters with loads exceeding 5 kW, and asset performance monitoring systems (APMS) on 1,200 general-duty distribution transformers (DTs). Additionally, 40 feeders with loads above 300 amps and high technical and administrative losses will be bifurcated.

The second project, the “Power Distribution Strengthening Project (LESCO),” valued at Rs27,613.00 million, has also been recommended to ECNEC. This initiative will be jointly financed by the ADB (Rs20,317 million) and LESCO’s resources (Rs7,296 million). The project entails the construction of five new 132 kV grid stations, the augmentation and extension of four 132 kV grid stations, the installation of 1,600 APMS units, 1,328 km of aerial bundled (AB) cable, and 131,901 AMI/AMR meters. These improvements are expected to enhance electricity supply, operational efficiency, and the modernisation of LESCO’s operations. Reducing technical and administrative losses will help mitigate the circular debt in the power sector, encourage investments, and lower electricity costs for consumers.

The third project, “Supply, Installation, Testing and Commissioning of Asset Performance Monitoring Systems (APMS) for 100 kVA and 200 kVA General Duty Distribution Transformers and Deployment of AMI Meters in MEPCO,” is estimated at Rs22,229.810 million. Also recommended to ECNEC, this project will be financed through the ADB. It involves the installation of 13,323 APMS units and 150,000 AMI meters in MEPCO’s jurisdiction. These technologies will provide real-time access to distribution transformers for enhanced monitoring and preventive action. The AMI system will enable two-way communication between utilities and consumers, allowing remote meter reading, real-time data monitoring, and proactive energy management.

Following these approvals, the CDWP has forwarded all three projects to ECNEC for final approval.

The Deputy Chairman of the Planning Commission and Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal, directed the Power Division to review the scope of the projects on a techno-economic feasibility basis in consultation with relevant experts and stakeholders. He further instructed that an updated version, incorporating these reviews, be resubmitted to ECNEC for final consideration.

These projects were accorded in-principle approval for strengthening the power distribution network, with financing options from the ADB to be explored through the Economic Affairs Division (EAD).