ISLAMABAD, Nov 29 (APP): Pakistan and Asian Development Bank (ADB) Tuesday signed loan and project agreements amounting to US$ 125 million for the Second Power Transmission Enhancement Investment Programme.
The loan agreement was signed by Secretary Economic Affairs Division (EAD), Tariq Bajwa and Country Director ADB, Werner E. Liepach on behalf of their respective organizations.
The US$ 125 million (Tranche-I) is being provided under new Multi-tranche Financing Facility under which ADB would be providing US$ 810 million (in total) over the period of ten years.
This investment programme would expand and reinforce country’s power transmission system, enabling it to provide a reliable and quality service capable of meeting increasing customer demand and supporting economic growth.
The investment programme consists of staged physical investment in the transmission system, including the rehabilitation augmentation, and expansion of transmission lines, substations, and supporting infrastructure.
The physical investments will support evacuation of new generation to improve system reliability and quality of supply through reinforcement improved monitoring and control and will meet increasing demand.
The capacity development component will further improve the financial management, regulatory relations, planning, project management and procurement capacity of the National Transmission and Dispatch Company Limited (NTDC) and Central Power Purchasing Agency (Guarantee) Limited (CPPA-G).
These investments are expected to increase institutional efficiency, cost recovery, competition, transparency and good governance within the power sector.