Power distribution system: Pakistan and ADB ink $242 million deal on improvement

Pakistan and Asian Development Bank (ADB) on Friday signed an agreement to invest 242 million dollars in improving power distribution system in the country. The signing ceremony was held here at Economic Affairs Division. The agreement was signed by Sibtain Fazal Halim, Secretary Economic Affairs Division and Rune Stroem, country director ADB, while the project agreement was signed by the representatives of all the 8 Distribution Companies (DISCOs).
The loan is meant for Tranche-2 of the Power Distribution Enhancement Investment Programme under Multi-tranche Financing Facility (MFF). ADB's total MFF programme is of 810 million dollars (US $800 million OCR and US $10 million ADF). The programme is comprised Multi-tranches and the same will be implemented in ten years period. The objective of the project is to rehabilitate, augment and expand power distribution systems and remove system bottlenecks in the project area.
The project shall add 3,380 Megavolt-Amperes (MVA) of transformer capacity, 387 km of new distribution lines, and improve security of supply to customers by moving toward compliance with regulatory security standards governing planning and operation of the distribution system and reliability improvement on the lower voltages. The project is expected to be completed by March 21. Speaking on the occasion the ADB's country director said that energy conservation and energy efficiency is the fastest and cheapest way of increasing electricity supply. "This project will not only reduce electricity lost during delivery to the customers but also improve the quality of service by helping to get rid of technical bottlenecks," he added.