ISLAMABAD – The Asian Development Bank (ADB) on Wednesday approved a $200 million loan to modernize Pakistan’s power distribution system and improve electricity supply.
According to a statement issued by ADB, the Power Distribution Strengthening Project aims to upgrade and modernize the transmission system to meet the country’s growing energy demand.
The project focuses on reducing energy losses during transmission and safeguarding infrastructure against climate change and natural disasters.
Initially, the project will facilitate three major power distribution companies: Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO), enhancing energy distribution efficiency and sustainability in these regions.
Yevgeny Zhukov, Director General for Central and West Asia at ADB, stated that the project is part of ADB’s ongoing efforts to address challenges in Pakistan’s power sector. A stable grid enhances the quality of life, while reducing energy losses and protecting revenue streams will help alleviate financial pressures on the power sector and, ultimately, the national economy.
Under the project, at least 332,000 advanced metering infrastructure systems, data management and communication systems, and 15,800 online transformer monitoring systems will be installed in LESCO, MEPCO, and SEPCO.
Additionally, SEPCO’s four grid stations will be upgraded from 66 kV to 132 kV, reducing transmission losses and accommodating increased energy demand.
In LESCO, 25 grid stations will be constructed and upgraded, equipped with essential equipment. High-loss 11 kV feeder lines will be replaced with aerial bundled conductor cables, and feeder line configurations will be optimized.
ADB’s Principal Energy Specialist, Seung Duck Kim, explained that these upgrades will not only minimize losses but also improve revenue collection and provide distribution companies with real-time data on power consumption and grid performance. In extreme weather conditions, the system will enable rapid fault detection and isolation, reducing restoration times and limiting blackout impacts.
The reform measures and policy recommendations would also be evaluated to enhance the performance of all three distribution companies.
According to the ADB, Pakistan, a founding member of the bank, has received over $52 billion in loans and grants since 1966 to support inclusive economic growth, improve infrastructure, energy, food security, transportation networks, and social services.
