ADB Approves $200 Million Loan to Upgrade Pakistan’s Power Distribution System

Islamabad:The Asian Development Bank (ADB) has approved a loan of $200 million to modernize Pakistan’s electricity transmission system and improve power supply across the country. The loan will be used under ADB’s **Power Distribution Strengthening Project** to upgrade the country’s transmission infrastructure in response to increasing electricity demand.

According to a statement from ADB, the project’s goal is to reduce energy losses during transmission and make infrastructure more resilient to climate change and natural disasters. The initiative will initially benefit three major distribution companies: **Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO),** and **Sukkur Electric Power Company (SEPCO)**, ensuring more efficient and sustainable power transmission in these regions.

**Yevgeny Zhukov**, Director General of ADB’s Central and West Asia Department, stated that this project is part of ADB’s ongoing efforts to address challenges faced by Pakistan’s power sector. By improving grid stability, the project will enhance the quality of life for the public and reduce financial losses in the power sector, which will help ease the economic pressure on the country.

The project will involve the installation of over **332,000 advanced metering infrastructure**, data management, and communication systems, along with **15,800 online transformer monitoring systems**. Additionally, four grid stations in SEPCO will be upgraded from **66 kV to 132 kV**, which will reduce transmission losses and meet rising electricity demand.

In **LESCO**, 25 grid stations will be upgraded with key equipment, while 11 kV feeder lines with high losses will be replaced by **aerial bundled conductor cables**, improving feeder line configuration. These upgrades will also enhance the revenue recovery and provide real-time data on electricity consumption and grid performance.

ADB’s **Principal Energy Specialist**, **Seung-Duk Kim**, highlighted that these upgrades will not only reduce losses but also improve revenue collection and allow for better performance monitoring of distribution companies. In case of extreme weather, the system will help quickly identify and isolate faults, minimizing downtime and reducing blackout impacts.

Furthermore, the project will review policy recommendations and reforms to improve the performance of the three distribution companies.

Since 1966, Pakistan has been a founding member of the Asian Development Bank. Over the years, ADB has provided more than **$52 billion** in loans and grants to support comprehensive economic development, infrastructure, energy, food security, transport networks, and social services in the country.