The Japan Special Fund will provide $900,000 for Power Distribution Enhancement Project of Pakistan to technical project design; economic and financial evaluations; compliance with the national and ADB's safeguard policies; and linkages among economic growth, poverty, and the power sector.
According to official sources, the purpose of the PPTA is to support the government's strategy for continued poverty reduction through sustained economic growth by assisting in the preparation of a power distribution enhancement project to ensure a sufficient and stable power supply through the distribution system in Pakistan.
The project will also improve system stability and security, reduce losses, and improve the reliability of supply through (i) the construction and upgrading of 132 kV, 66 kV, 32 kV, and 11 kV distribution lines, (ii) construction of 132 kV substations and 66 kV substations, (iii) extension of 132 kV and 66 kV substations, and (iv) installation of upgrading of the metering systems, meters, and billing and collection systems.
The power sector is currently undergoing reforms and restructuring, supported by ADB. In the transition phase, sector sustainability needs to be ensured. By providing liquidity for augmentation and expansion projects as well as for larger maintenance work, the proposed project will contribute to achieving sustainability in the sector.
To achieve the economic growth targets the government has set the power sector needs to increase its generation capacity, efficiency and coverage. The project will also increase the confidence of commercial financiers in financing long-term transmission and distribution assets during the transmission period.
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