By Staff Reporter
ISLAMABAD: The Asian Development Bank (ADB) on Thursday approved loans totalling $330 million for the Second Power Transmission Strengthening Project, which the bank described as one of the government’s top priority investments to expand the national transmission network and evacuate low-cost renewable and hydropower to major load centres.
The project will include the construction of a new 500 kilovolt transmission line, approximately 290 kilometres in length, and the upgrading of critical grid infrastructure serving Islamabad and Faisalabad.
“These investments will address long-standing constraints in Pakistan’s north–south power corridor, enabling the transfer of up to 3,200 megawatts of clean energy from hydropower plants in the north of the country. This will help reduce reliance on imported fuels, improve energy security, and support Pakistan’s transition to a more affordable and sustainable energy mix,” the ADB said in a statement.
The initiative also supports broader power sector reforms and contributes to state-owned enterprise reforms by strengthening institutional, financial, operational and governance improvements at the National Grid Company of Pakistan Limited (NGC), which will serve as the project’s executing agency.
The financing package consists of a $285 million loan from ADB’s ordinary capital resources and a $45 million concessional loan. “This financing will help NGC expand and modernise transmission assets, strengthen institutional capacity, improve financial management, and advance public outreach and gender equity initiatives,” the bank said.
ADB Country Director for Pakistan Emma Fan said: “This project represents ADB’s strong partnership with Pakistan and our shared commitment to accelerate clean energy transition and integration, and to achieve a resilient and sustainable energy sector. By expanding transmission capacity and enabling the delivery of low-cost hydropower, the project aims to improve access to clean energy in the power mix, reduce system costs, and support Pakistan’s long-term and sustainable economic development.”
The project aligns with Pakistan’s National Power Policy (2021), Vision 2025, and the country’s Nationally Determined Contributions (2021), which prioritise energy security, climate resilience, affordable clean power and sustainable development. The new infrastructure will also lower technical losses, enhance grid reliability, and support the financial sustainability of the energy sector, the ADB said.
The Manila-based lender added that it “continues to work with Pakistan and development partners to advance reforms, strengthen sector governance, and expand access to greener and more reliable electricity”.
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