ADB’s $260m loan to improve Pakistan’s power transmission network

The Asian Development Bank (ADB) has signed a $260m loan agreement with the Government of Pakistan to help improve the country’s power transmission network.

The loan agreement is part of the Second Power Transmission Enhancement Investment Program, which aims to improve coverage, reliability, transparency, and quality of the power transmission service in Pakistan.

The investment program includes staged physical investments in the high-voltage transmission system, including the rehabilitation, augmentation and expansion of transmission lines, substations and supporting infrastructure.

ADB Central and West Asia director general Werner Liepach 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 funding will be used to expand the 220kV transmission network in Sindh and Balochistan provinces as well as to upgrade the supervisory control and data acquisition (SCADA) and revenue metering systems (RMS) in the country.

Modernizing the SCADA and RMS across the national grid is expected to allow real time monitoring and control of the grid while preventing losses, reducing power outages, and increasing grid stability and capacity.

ADB said in a statement: “It will also feed computerized metering data complying with the grid code into the system for settlement of the market operator, the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G), to streamline revenue collection, billing and payment processes, as well as create the foundation for an energy trading platform.”

The upgrade of power transmission network is also expected to help offtake power from new and renewable power plants to the national grid as well as on the load centers, thus enhancing energy security in the country.