Multi-tranche financing facility
An official source said the funding has been sought under the multi tranche financing facility of the bank. He said the bank has changed its previous strategy of allocating funds and now funds are approved only for ready to implement projects. According to the source, the project was ready for implementation
and it was likely to be approved by the bank during the current month.
The government has requested ADB to finance construction of a
500 kV circuit with a transmission line of about 600 km along with a new 500 kV Grid Substation at Moro in Sindh.
The sub-projects will increase transmission capacity and improve efficiency and security of supply in
Punjab and Sindh.
5000 MW power shortfall
Pakistan’s power system faced with a shortfall of 5,000 MW operates under stress conditions due to increase in demand and overloaded infrastructure. The transmission network, the power system’s backbone, requires renovation and expansion to achieve reliability and high-quality power supply. This needs to be done to cater to the rising demand from industrial, commercial, agricultural, and domestic customers. The government has recently taken some major decisions for implementing the required administrative reforms in the power sector. For the success of administrative reforms major initiatives are also required in the improvement of the transmission and distribution network. New investment will help enhance the efficiency of power transmission system and provide an adequate and reliable power supply to consumers.
Eliminating power system bottlenecks
The source said the sub-projects finalised for the new tranche will improve power transmission infrastructure through development of additional 500 kV transmission lines and grid substations facilities, facilitating the process of eliminating power system bottlenecks. It will help increase inter-regional transmission capacity and evacuate power from new power stations to the load centers. It will help in the addition of approximately 600 km 500 kV transmission lines, commissioning of one new 500 kV grid station and expansion of four existing 500 kV grid substations. Subsequently, it will also ensure improved security of supply to customers by moving towards compliance with regulatory security standards governing planning and operation, and improved reliability of the primary transmission system.
Improve capacity utilisation of IPPS
The sub-projects will help supply the power generated from the Independent Power Producers (IPPs) which are expected to be commissioned during 2013-15 period. These investments are consistent with the government’s strategy to achieve more efficient power systems for reliable and high-quality power supply. It will also help in greater access and affordable electricity, by bringing additions of generation capacity and energy to load centers in the two densely populated provinces of Sindh and Punjab.
