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PR No. 88 Loan and grant agreement signed with ADB for Power Transmission Enhancement

Government of Pakistan and Asian Development Bank here on Thursday signed a loan and a grant agreement amounting to US$284 million (Loan 3677 for $280 million and Grant for $4 million) from ADB's Ordinary Capital Resources and High-Level Technology Fund for the Second Power Transmission Enhancement Investment Program- Tranche-3. Mr. Noor Ahmed, Secretary, Economic Affairs Division (EAD) signed the Loan Agreement with Ms. Xiaohong Yang, Country Director, ADB. The National Transmission and Despatch Company (NTDC) is the implementing agency of the Tranche 3 Project under the existing Multi-tranche Financing Facility amounting to US$ 810 million. Certain Components of the Investment Program will be implemented by Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) including certain capacity components, as set out in the legal agreement for each tranche. The Project objective is to attain improved coverage, reliability, transparency and quality of the power transmission service in the Project areas. The Project shall comprise of the following activities:- i. Construction of 500/220/132 kV Lahore North substation with six 500 kV line bays, six 220 kV line bays, and two 132 kV line bays, including installation of four 750 MVA, 500/220 kV and three 250 MVA, 220/132 kV transformers along with allied equipment and accessories. ii. Installation of approximately 194 km of associated double circuit transmission lines. iii. Construction of 500 kV switching station at Maira with 8 line bays and 4 shunt reactor banks along with allied equipment and accessories. iv. Construction of the 220 kV substation at Jauharabad with four 220 kV line bays and eight 132 kV line bays, including installation of three 160 MVA, 230/132 kV transformers along with allied equipment and accessories. v. Installation of lithium-ion battery packs (5 MWh). vi. Installation of balance of system including inverters (20MW). The impact of Tranche 3 is improved transmission infrastructure and improved energy market transparency whereas the outcome of Tranche 3 is improved coverage reliability, transparency and quality of the power transmission service in Project areas. The Project is expected to be completed by 30th June 2023. The project when completed is expected to address some critical bottlenecks in distribution system of NTDC and will facilitate uninterrupted and reliable supply of electricity of 1150 MW in project area.

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