PR No. 277 LOAN SIGNING OF SECOND POWER TRANSMISSION ENHANCEMENT INVESTMENT PROGRAM (TRANCHE-1) BETWEEN ECONOMIC AFFAIRS DIVISION AND ASIAN DEVELOPMENT BANK Islamabad: November 29, 2016.
The Government of Pakistan and Asian Development Bank signed loan and Project Agreement amounting to $125 million for Second Power Transmission Enhancement Investment Program (Tranche-1). Mr. Tariq Bajwa, Secretary Economic Affairs Division (EAD) signed the Loan Agreement with Mr. Werner E. Liepach, Country Director ADB. Under this new Multitranche Financing facility, ADB will provide $810 million, in total over the period of 10 years.
This investment program will expand and reinforce Pakistan’s power transmission system, enabling it to provide a reliable and quality service capable of meeting increasing customer demand and supporting economic growth. The investment program consists of staged physical investments in transmission system, including the rehabilitation, augmentation, and expansion of transmission lines, substations, and supporting infrastructure. The physical investments will support evacuation of new generation to improve system reliability and quality of supply through reinforcement and improved monitoring and control and will meet increasing consumer demand.
The capacity development component will further improve the financial management regulatory relations planning project management, and procurement capacity of the transmission system owner and operator, the National Transmission and dispatch Company Limited (NTDC), and the sector’s newly established commercial operator, the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G). These investments will increase institutional efficiency, cost recovery, competition, transparency and good governance within the power sector.