ADB approves $200m loan for Pakistan’s power distribution sector

The Asian Development Bank (ADB) has approved a $200 million loan to help Pakistan modernize its power distribution infrastructure and improve the reliability of its electricity supply.

The loan will support the Power Distribution Strengthening Project, which aims to address the country’s increasing electricity demand and tackle challenges like energy losses, climate risks, and the resilience of infrastructure.

The project will focus on upgrading the electricity distribution systems in three major companies: Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO).

The improvements will reduce energy losses, increase the efficiency of energy delivery, and promote sustainability in these regions.

Yevgeniy Zhukov, ADB’s Director General for Central and West Asia, emphasized the importance of reliable electricity in enhancing the quality of life. He added that the project would help protect revenue and ease the financial pressure on Pakistan’s power sector.

Key components of the project include the installation of over 332,000 advanced meters and data management systems, along with 15,800 online transformer performance monitoring systems.

Additionally, four grid stations in SEPCO will be upgraded, and 25 grid stations in LESCO will be modernized with new equipment.

To further improve performance, high-loss 11 kV feeder lines will be replaced with aerial bundled conductor cables, and feeder line configurations will be enhanced. These changes will help identify faults quickly, especially during extreme weather, reducing power outages.

The project will also include policy reforms aimed at improving the operational efficiency of the three distribution companies. Since joining ADB, Pakistan has received over $52 billion in support for various sectors, including energy and infrastructure development.