The Asian Development Bank (ADB) has approved loans worth $330m for Pakistan’s Second Power Transmission Strengthening Project, a key initiative to expand the country’s clean energy transmission infrastructure.
ADB’s financing package comprises a $285m loan from its ordinary capital resources and a $45m concessional loan.
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The funds will enable the National Grid Company of Pakistan (NGC) to expand and modernise its transmission assets, build institutional capacity, enhance financial management, and promote public outreach and gender equity initiatives.
The project is said to be a top priority for the national government and aims to strengthen the domestic transmission network to carry low-cost renewable and hydropower to major load centres.
It includes the construction of a new 500kV transmission line spanning approximately 290km, along with upgrades to critical grid infrastructure serving Islamabad and Faisalabad.
The investments target longstanding constraints in Pakistan’s north-south power corridor, facilitating the transfer of up to 3,200MW of clean energy from northern hydropower plants in the country.
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By GlobalDataThe project also aims to cut Pakistan’s dependence on imported fuels, bolster energy security, and support the country’s transition to a more affordable and sustainable energy mix.
The initiative also advances wider power sector reforms and supports state-owned enterprise reforms by enhancing institutional, financial, operational, and governance improvements at NGC, formerly known as the National Transmission Dispatch Company.
NGC will act as the executing agency for the Second Power Transmission Strengthening Project.
ADB Pakistan country director Emma Fan said: “This project represents ADB’s strong partnership with Pakistan and our shared commitment to accelerate clean energy transition and integration, and to achieve a resilient and sustainable energy sector.
“By expanding transmission capacity and enabling the delivery of low-cost hydropower, the project aims to improve access to clean energy in the power mix, reduce system costs, and support Pakistan’s long-term and sustainable economic development.”
The Second Power Transmission Strengthening Project is aligned with Pakistan’s goals to advance energy security, climate resilience, affordable clean power, and sustainable development.
The proposed infrastructure is also expected to lower technical losses, improve grid reliability, and support the domestic energy sector’s financial sustainability.
In December 2024, ADB sanctioned a $200m loan to modernise Pakistan’s power distribution infrastructure.
