Project Details

Project Number LN4271-PAK
Project Name SECOND POWER TRANSMISSION ENHANCEMENT INVESTMENT PROGRAM (TRANCHE 4)
Sector/Thematic Area None
Financing Agency AsDB
Modality C01
Description In October 2022, ADB received the project financing request from the government of Pakistan to finance the enhancement of the NTDC transmission grid through a loan totaling $189 million from ADB's Ordinary Capital Resources (OCR). The proposed project will finance the construction of high-voltage transmission infrastructure and procurement of materials required for asset management and reduction of transmission system constraints. Tranche 4 will support NTDC in meeting growing electricity demand efficiently and reliably at the load centers of Punjab, Sindh and Khyber Pakhtunkhwa provinces through the construction of the transmission network and augmentation of the existing substations. In addition, the equipment and goods to be procured under Tranche 4 will be utilized to restore the transmission lines damaged during the recent floods and the other damages to be identified in the disaster recovery framework under preparation by the government with the support from ADB, World Bank, EU, and the UN. The project will have two outputs. Output 1 will include six subprojects to add a total of 2,680 MVA in substation capacity and about 350 km of transmission lines and procurement of goods for operation and maintenance of NTDC assets to reduce the substations breakouts. An additional electricity sale of 13,481 GWh and associated transmission network loss reduction of 135 GWh are expected due to the project upon commissioning in 2026. Output 2 will involve support to gender mainstreaming in NTDC and increasing number of female professionals. The project is linked and sequenced with the MFF earlier projects. The proposed project is expected to have the positive medium to long term impact on the overall power sector and economy of Pakistan by addressing the emerging needs of the transmission network post floods, scaling up the transmission infrastructure to be at par with the increasing generation capacity contributing to the revival of post pandemic and post-calamity economy of the country and reduction of the circular debt through reliable and unconstrained electricity transmission. The project is aligned with ADB Strategy 2030 operational cluster 3 on infrastructure and economic connectivity and supports four operational priorities: (i) addressing remaining poverty and reducing inequalities, (ii) accelerating progress in gender equality, (iii) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability, and (iv) strengthening governance and institutional capacity. It is in line with ADB CPS, 2021-2025 for Pakistan. The proposed project supports Pakistan NDC mitigation measure on upgrading the transmission network and is aligned with the Paris Agreement criteria. It will contribute to the annual carbon dioxide emission savings of about 177,193 tons which accounts for energy efficiency and energy savings that will come from the use of high temperature low sag conductors and reduced technical losses. The prop
Adaptation Finance (thousand USD) 101493.0
Mitigation Finance (thousand USD) 87507.0
Total Project Climate Financing Amount (thousand USD) 189000.0
Mitigation Objective Climate components
Adaptation Objective Climate components
Region Asia