GoP receives second tranche for power transmission

By Staff Reporter
Wednesday – March 21, 2018
ISLAMABAD: Government of Pakistan (GoP) and Asian development bank (ADB) signed loan and project agreements amounting $260 million for the second power transmission enhancement investment programme (Tranche-II) on Tuesday.

According to an official statement, under the second power transmission enhancement investment programme, a multi-tranche financing facility, ADB will provide $810 million, in total, over a period of 10-years.

It shall support the evacuation of new generation, including that from renewables, improvement of system reliability and power supply quality through reinforcement and improved monitoring and control.

It shall help improve the financial management, regulatory relations, planning, project management, and procurement capacities of the transmission system owner and operator, the national transmission and despatch company limited (NTDC) and the sector’s newly established commercial operator, the central power purchasing agency (guarantee) limited (CPPA-G).

These investments will increase institutional efficiency, cost recovery, competition, transparency, and good governance within the power sector.

Tranche two of the second power transmission enhancement investment programme shall be used for financing the four subprojects which are 220 kilovolts (kV) Mirpur Khas substation with associated transmission, Dera Ismail Khan’s Zhob 220kV transmission line with Zhob substation, construction of new 220 kV Guddu-Shikarpur-Uch-Sibbi transmission line and supervisory control and data acquisition (SCADA) system and revenue metering system.

Economic affairs division (EAD) secretary Syed Ghazanfar Abbas Jilani signed the loan agreement with ADB country director Xiaohong Yang. The ceremony was also attended by visiting ADB director general for central and west Asian department Werner E. Liepach.