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Pakistan Secures $200M Loan for Power System Upgrade

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Pakistan has secured a $200 million loan from the Asian Development Bank (ADB) to enhance its power distribution infrastructure. The funding is part of the Power Distribution Strengthening Project, which aims to improve the reliability of electricity supply and reduce energy losses as the country faces increasing electricity demand.

The first phase of the project will support three key distribution companies: Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO). The loan will fund the installation of 332,000 advanced metering devices, data management systems, and 15,800 transformer performance monitoring systems.

In SEPCO, four grid stations will be upgraded, increasing the voltage from 66 kV to 132 kV. LESCO will also benefit from the construction and modernization of 25 grid stations, along with the replacement of high-loss 11 kV feeder lines with aerial bundled conductor cables to improve system performance.

Additionally, the project will explore reforms and policy recommendations aimed at enhancing the efficiency of these distribution companies. ADB highlighted that these improvements will also strengthen Pakistan’s power infrastructure against climate change and disaster risks.

This investment marks a crucial step in addressing Pakistan’s power distribution challenges and ensuring a more reliable electricity supply for the future.

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