Pakistan signs US $248 million loan deal with Asian Development Bank

Islamabad: Pakistan has signed a loan and project agreement worth USD 248 million with Asian Development Bank (ADB) for power transmission enhancement investment programme, according to a media report on Saturday.

The agreement was signed on Fridy by Muhammad Saleem Sethi, Secretary Economic Affairs Division (EAD) and Werner E.

Liepach, Country Director ADB, and it is expected to be completed by the end of 2016, the Dawn reported.

The power transmission tranche-4 aims to improve energy supply and security by reducing transmission infrastructure bottlenecks and transmission losses and expanding the national transmission grid by connecting generation sources and load centers, the paper said.

The project aims at enhancement in the capacity of the transmission system by rehabilitation, extension, augmentation and expansion of existing 500 KV and 220 KV network of NTDC, to meet the growing power demand in the country.

Tranche-4 is the last tranche of transmission MFF under which four new grid stations of 220 KV would be constructed in D I Khan, Nowshera, Lalian and Chakdara.

A new transmission line of 500 KV would be constructed for dispersal of power from 747 MW Power Plant at Guddu.

The ADB has been providing a multi-tranche financing facility amounting to USD 800 million for Power Transmission Enhancement Investment Program since 2006.