ISLAMABAD (Kashmir English): The Asian Development Bank (ADB) has approved a total $330 million loan for Pakistan’s second Power Transmission Strengthening Project.
According to ADB, the project is among the Government of Pakistan’s priority investments to expand the national transmission network and efficiently transport affordable hydro and renewable energy to the country’s major load centers.
The project will construct approximately 290 kilometers of new 500 kV transmission lines while upgrading key grid infrastructure supplying power to Islamabad and Faisalabad.
The development will remove long-standing bottlenecks in Pakistan’s North-South Power Corridor and enable the transmission of up to 3,200 MW of clean energy from northern hydropower plants, reducing dependence on imported fuel and increasing sustainability in the energy sector.
The project also supports the government’s broader agenda of power sector reforms and improving public institutions.
Under this, the institutional, financial, operational, and management performance of the National Grid Company of Pakistan Limited, formerly known as the National Transmission and Dispatch Company, will be improved. The same institution will implement the project.
ADB’s financing package includes a $285 million commercial loan and a $45 million concessional loan that will help NGC expand its transmission network, enhance institutional capacity, improve financial management, public awareness and advance gender equality initiatives.
The project is aligned with the National Power Policy 2021, Vision 2025, and Pakistan’s Nationally Determined Contributions 2021, which prioritize energy security, climate resilience, affordable clean electricity, and sustainable development.
