Islamabad: The Asian Development Bank has approved $330 million in financial assistance for Pakistan to improve the country’s power transmission system. The ADB says that this fund will be used under the “Second Power Transmission Strengthening Project.”
Under the project, a new 290-kilometer-long 500 kV transmission line will be laid, which will help in effectively transferring the increasing hydropower generation to the national grid in the future. With the help of this line, about 3,200 MW of hydropower will be added to the grid.
According to the ADB, the grid stations of Islamabad and Faisalabad will also be upgraded through modern technology, which will make the transmission system more stable. The institution says that the increased supply of cheap hydropower will reduce dependence on imported fuel and improve energy security.
According to the bank’s report, the $330 million includes a general loan of $285 million and a concessional loan of $45 million. ADB has called this a key step in Pakistan’s ongoing energy reform program.
