ADB agrees to loan $260mln for power transmission

ISLAMABAD: Asian Development Bank (ADB) on Tuesday agreed to loan $260 million to expand electricity transmission network in Sindh and Balochistan and upgrade technologies to ensure uninterrupted power supply.

Manila-based lender ADB and the government signed the loan agreement to improve transmission network. Xiaohong Yang, ADB country director for Pakistan and Syed Ghazanfar Abbas Jilani, secretary of the Economic Affairs Division, signed the agreement at a ceremony. Werner Liepach, ADB director general for Central and West Asia also witnessed the signing.

The agreement is part of the second power transmission enhancement investment program aimed to improve coverage, reliability, transparency, and quality of the power transmission service in Pakistan by expanding the 220-kilovolt (kV) transmission network in Sindh and Balochistan and upgrading the supervisory control and data acquisition (Scada) and revenue metering systems (RMS) in the country.

“Upgrading the Scada and RMS across the national grid will enable real time monitoring and control of the grid, preventing losses, reducing power outages, and increasing grid stability and capacity,” an ADB’s statement said.

“It will also feed computerised metering data complying with the grid code into the system for settlement of the market operator, the Central Power Purchasing Agency (Guarantee) Limited to streamline revenue collection, billing and payment processes, as well as create the foundation for an energy trading platform.” Liepach of ADB said a reliable and strong transmission network is essential to ensure uninterrupted supply of power for the industry and to propel economic growth.

“ADB remains committed to work with the government of Pakistan to develop a larger, stronger, smarter, and climate resilient power transmission network,” the statement quoted the official as saying.

The power transmission network upgrade will also help offtake power from new and renewable power plants to the national grid and on the load centers enhancing Pakistan’s energy security.

China has already pledged financial assistance to set up 4,000 megawatts of power transmission line connecting Matiari in Sindh to Lahore. It is the first ever high-voltage direct current (HVDC) transmission line project to be built under China-Pakistan Economic Corridor. Last week, government approved extension in financial close deadline of +660kV HVDC Matiari-Lahore transmission line.

The ADB last year unveiled a new country operations business plan for Pakistan for 2018-20 with indicative resources available amounting to $4.673 billion in loans in energy, transport, agriculture, water, public sector management, finance and social sectors. In the energy sector, the 2018-20 country plan includes a new $1bn multi-tranche financing facility for the hydropower development investment programme, which focuses on clean energy and hydropower generation.