ADB approves $250 million loan to upgrade Pakistan’s power transmission system 

The Asian Development Bank (ADB) has granted a $250 million loan to Pakistan to enhance the country’s power transmission system, addressing persistent electricity shortages. 

The approved aid aims to ensure a reliable electricity supply by expanding and enhancing the power transmission network in Punjab and Khyber Pakhtunkhwa provinces, as outlined in an official ADB statement. 

The initiative, known as the Power Transmission Strengthening Project, focuses on fortifying the national grid’s stability by increasing transmission capacity. 

The project includes the expansion of high-voltage transmission networks, specifically 500 kilovolt (kV) and 220 kV transmission line loops, with the goal of reducing transmission losses in Lahore, Punjab, through the replacement of outdated transmission lines. 

ADB Director General for Central and West Asia, Yevgeniy Zhukov, emphasised the significance of a reliable power supply for inclusive and sustainable economic growth. 

He expressed satisfaction in continuing ADB’s support for Pakistan’s pursuit of energy security and improved energy efficiency. 

In addition to reinforcing power transmission, the project aims to complement ADB’s existing assistance to the National Transmission & Despatch Company Limited (NTDC). 

This support targets energy security, climate resilience, and increased transmission capacity for the deployment of sufficient, reliable, clean, and cost-effective energy. 

The project’s key objectives extend to enhancing the management of the national transmission system. 

Beyond strengthening power transmission, ADB’s initiative will improve the project and financial management of NTDC, incorporating climate resilience in planning and operations. 

To promote gender equality and women’s involvement in the energy sector, ADB plans to develop mentorship guidelines, conduct awareness campaigns, establish childcare centres, and provide technical training for female staff within NTDC. 

The project also includes livelihood skills development for women in the designated areas, aiming to enhance their economic opportunities. 

Additionally, local communities will receive training to enable them to respond effectively to climate-induced natural hazards.