ADB approves $200 million loan to help Pakistan upgrade power infrastructure

ISLAMABAD: The Asian Development Bank (ADB) has approved a $200 million loan to help Pakistan modernise its power distribution system, aiming to make electricity more reliable for people across the country.

Through its Power Distribution Strengthening Project, ADB plans to upgrade the infrastructure to better handle Pakistan’s growing energy needs. The project will also tackle energy losses during transmission and strengthen the system against the impacts of climate change and natural disasters.

Initially, three major distribution companies will benefit from this: Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO). The idea is to boost energy delivery in these regions, helping to meet increasing demand.

“This project is part of ADB’s ongoing efforts to help solve Pakistan’s power sector challenges,” said Yevgeniy Zhukov, ADB’s Director General for Central and West Asia.

He pointed out how reliable electricity makes a real difference in everyday life, and added that by reducing energy losses, the project will also ease some of the financial pressure on the country’s power sector.

As part of the project, 332,000 advanced metering systems will be installed, along with the necessary tools for data management and communication. Plus, 15,800 systems to monitor transformer performance will be rolled out in LESCO, MEPCO, and SEPCO.

In SEPCO, the voltage of four grid stations will be upgraded from 66 kV to 132 kV, helping reduce transmission losses and manage rising demand. Over in LESCO, 25 grid stations will either be built or upgraded, and inefficient 11 kV feeder lines will be replaced with better cables. These improvements are expected to boost efficiency, while also giving companies real-time data on power usage to help collect revenue.

ADB’s Principal Energy Specialist Seung Duck Kim noted that these upgrades will make it easier to identify and fix faults quickly, especially during extreme weather, which will help cut down on outages. He also mentioned that the project will look into further reforms to improve the overall performance of these companies.

Pakistan has been working with ADB since 1966 and has received more than $52 billion in loans and grants. These funds have supported a wide range of initiatives aimed at boosting the economy and improving infrastructure, energy, transport, and social services.

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