Asian Development Bank Greenlights $250 Million for Power Transmission Boost in Pakistan
The Asian Development Bank (ADB) has granted approval for a substantial $250 million in loans to enhance and expand the power transmission network in the provinces of Punjab and Khyber Pakhtunkhwa in Pakistan, according to a statement released on Friday.
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The multilateral institution highlighted that the project will involve the extension of the high-voltage transmission network, incorporating the installation of close to 500 kilovolt (kV) and 220 kV transmission lines loops. Additionally, the project seeks to reduce transmission losses in Lahore, Punjab's bustling city, by replacing outdated transmission lines.
The initiative, known as the Power Transmission Strengthening Project, aims to fortify the stability of the national grid by augmenting its transmission capacity.
ADB's Director General for Central and West Asia, Yevgeniy Zhukov, emphasized the importance of a reliable power supply for inclusive and sustainable economic growth, as well as the creation of economic opportunities for rural communities.
The project is positioned to complement ADB's ongoing support for the National Transmission & Despatch Company Limited (NTDC). The overarching goals include ensuring energy security, fostering climate resilience, and expanding transmission capacity to facilitate the deployment of sufficient, reliable, clean, and cost-effective energy.
Improving the management of Pakistan's national transmission system is another pivotal objective of the project, according to ADB.
Moreover, ADB highlighted that the initiative will enhance the project and financial management of NTDC, along with its capacity to incorporate climate resilience in planning and operations.
ADB Senior Energy Specialist, Takhmina Mukhamedova, detailed additional components of the project aimed at promoting gender equality and women's participation in the energy sector. These include the development of guidelines for mentorships, awareness campaigns, establishment of childcare centers, and technical training for female staff in NTDC. The project will also feature livelihood skills development for women in the project areas to improve economic opportunities, along with training for local communities to respond to climate-induced natural hazards.
In a related move last month, ADB sanctioned a technical assistance fund of $2 million for the "Preparing the Sindh Coastal Resilience Sector Project." Focused on the Thatta, Sujawal, and Badin districts, the project aims to address environmental challenges such as land subsidence, flooding, erosion, and saline intrusion.
