Pakistan bags $200m loan for power distribution upgrade

This will fund installation of at least 332,000 advanced metering infrastructure.

The Asian Development Bank (ADB) has granted Pakistan a $200m loan to modernise the country’s power distribution infrastructure and improve distribution companies’ ability to deliver reliable electricity.

In a statement, ADB said the funding is under the Power Distribution Strengthening Project that will upgrade Pakistan’s distribution systems to meet its growing electricity demand. It will focus on reducing energy losses during transit and enhancing the resilience of infrastructure against climate change and disaster-related risks.

Three major distribution companies, Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO), will be supported in the project’s initial phase.

The loan will fund the installation of at least 332,000 advanced metering infrastructure, along with data management and communication systems, and at least 15,800 online transformer performance monitoring systems in LESCO, MEPCO, and SEPCO.

Furthermore, the voltage of four grid stations in SEPCO will also be upgraded from 66 kilovolt (kV) to 132 kV. In LESCO, at least 25 grid stations will be constructed and modernised, whilst high-loss 11 kV feeder lines will be replaced with aerial bundled conductor cables, and feeder line configuration will be improved.

The project will also study reform actions and policy recommendations that would improve the operational efficiency and overall performance of the three distribution companies.