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The Asian Development Bank (ADB) has sanctioned a $200 million loan to upgrade Pakistan’s power distribution infrastructure and ensure a more reliable electricity supply.
As per an ADB press release, the Power Distribution Strengthening Project aims to meet growing electricity demand by enhancing distribution systems, reducing energy losses during transmission, and fortifying infrastructure against climate and disaster-related risks.
Initially, the project will benefit three key companies: Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO). Planned initiatives include installing over 332,000 advanced metering systems, improving data and communication networks, and monitoring transformer performance.
Additionally, SEPCO will upgrade four grid stations from 66 kV to 132 kV, while LESCO will see at least 25 new or modernized grid stations. High-loss feeder lines will also be replaced with aerial bundled cables to reduce transmission losses and improve efficiency.
“These measures will not only reduce losses but also enhance revenue collection and provide real-time data on electricity consumption and grid performance,” said ADB Principal Energy Specialist Seung Duck Kim.
The project also includes policy reform recommendations to boost the operational efficiency of the three distribution companies, promising quicker fault resolution and a more sustainable energy delivery system.
