ISLAMABAD - Government of Pakistan and Asian Development Bank have signed loan and project agreements amounting to $248 million for Power Transmission Enhancement Investment Programme Tranche 4 here on Friday.

Muhammad Saleem Sethi, Secretary, Economic Affairs Division (EAD) and Werner E. Liepach, Country Director, ADB signed the Loan Agreement. The power transmission tranche 4 aims to improve energy supply and security by reducing transmission infrastructure bottlenecks and transmission losses and expanding the national transmission system by connecting generation sources and load centers.

Asian Development Bank (ADB) has been providing a Multi-tranche Financing Facility (MFF) amounting to $800 million for Power Transmission Enhancement Investment Programme since 2006. The investment programme has supported the rehabilitation, augmentation and expansion of the transmission substations, transmission lines of 220 kv and above installation of static var compensator (SVC) equipments. Tranche 4 is the last tranche of transmission MFF, under this tranche 4 new grid stations of 220 kv shall be constructed in D.I Khan, Nowshera, Lalian and Chakdra. A new transmission line of 500 kv shall also be constructed for dispersal of Power from 747 MW Power Plant at Guddu. “Expanding and upgrading the transmission backbone will provide reliable and high-quality energy supplies to meet increasing demand from industrial, commercial, agricultural and domestic customers,” said Liepach. “It will support the government’s strategy to provide people with better access to affordable electricity.” Secretary, EAD appreciated ADB’s investments for the Jamshoro Coal Power Project, Budgetary Support Programme for energy sector and upcoming Multi-tranche Financing Facility (MFF) for the Smart Metering System amounting to $990 million.

 Werner E. Liepach on this occasion reaffirmed ADB’s support and cooperation for development projects in Pakistan. The project is expected to be completed by 31 December, 2016.