ADB authorises a $330 million loan for Pakistan’s sustainable energy transmission project.
A $330 million loan for Pakistan’s Clean Energy Transmission Project was authorised by the Asian Development Bank (ADB) on Thursday.
This project will upgrade the grid from Islamabad to Faisalabad by laying a 290-kilometer, 500-kilovolt transmission line.
The release claims that the program will increase energy security and lessen reliance on foreign gasoline. When finished, the project will assist in lowering electricity prices for customers and resolving north-to-south power-sector bottlenecks.
According to ADB, this project will be a significant step towards the promotion of clean energy and sustainable growth in Pakistan’s energy sector.
The news statement states that the ADB financing package consists of a $45 million concessional loan and a $285 million loan from its regular capital resources.
Through the funds, NGC will be able to improve financial management, strengthen institutional capacity, update transmission infrastructure, and promote gender equity and public outreach initiatives.
The project, according to Emma Fan, ADB Country Director for Pakistan, demonstrates the bank’s solid collaboration with Pakistan and their shared dedication to the clean energy transition. Increasing transmission capacity and supplying inexpensive hydropower, she continued, would boost access to clean energy, lower system costs, and promote Pakistan’s long-term sustainable economic growth.
The Second Power Transmission Strengthening Project, which focusses on energy security, climate resilience, cheap clean power, and sustainable development, is in line with Pakistan’s National Power Policy 2021, Vision 2025, and Nationally Determined Contributions 2021, according to the statement.
It further stated that the new infrastructure will enhance grid dependability, reduce technical losses, and promote the financial stability of the industry. In order to promote reforms, improve governance, and increase access to cleaner and more dependable electricity, ADB reaffirmed its commitment to collaborating with Pakistan and international partners.