The Asian Development Bank (ADB) has approved a $200 million loan aimed at upgrading and modernizing Pakistan’s power distribution infrastructure and enhancing the reliability of electricity supply. According to an ADB press release issued on Wednesday, the Power Distribution Strengthening Project will focus on upgrading distribution systems to meet the increasing electricity demand in the country. Key objectives include reducing significant energy losses during transmission and improving the resilience of infrastructure against climate change and disaster-related risks.

Initially, the project will benefit three major distribution companies: Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO), promoting more efficient and sustainable energy delivery in these areas. “Reliable grid-connected electricity improves the quality of life,” said Yevgeniy Zhukov, ADB’s Director General for Central and West Asia. He emphasized that the project’s loss reduction and revenue protection measures would help mitigate financial losses in the power sector, easing economic pressures on the country.

The initiative will fund the installation of over 332,000 advanced metering infrastructures, along with data management and communication systems, and 15,800 online transformer performance monitoring systems across LESCO, MEPCO, and SEPCO. Read more: ADB to provide $86.2mln to Pakistan for sustainable aviation fuel plant Additionally, four grid stations in SEPCO will see voltage upgrades from 66 kilovolt (kV) to 132 kV to reduce transmission losses and address rising electricity demand. In LESCO, at least 25 grid stations will be constructed and modernized with essential equipment.

Credit: Independent News Pakistan (INP)