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

ISLAMABAD: The Asian Development Bank (ADB) has approved a $200 million loan to modernize Pakistan’s power distribution network, aiming to provide more reliable electricity and address growing energy demands.

The Power Distribution Strengthening Project will initially benefit Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), and Sukkur Electric Power Company (SEPCO). The upgrades will target infrastructure improvements, reduce energy losses, and enhance climate resilience.

ADB plans to install 332,000 advanced metering systems and 15,800 transformer monitoring systems in these regions. Additional initiatives include upgrading SEPCO’s grid station voltage from 66 kV to 132 kV and building or upgrading 25 grid stations in LESCO.

“This project is part of ADB’s ongoing efforts to address Pakistan’s power sector challenges,” said Yevgeniy Zhukov, ADB’s Director General for Central and West Asia. He highlighted that reliable electricity would improve daily life and reduce financial strain on the power sector.

ADB’s Principal Energy Specialist Seung Duck Kim emphasized that the upgrades would enhance efficiency, reduce outages, and simplify fault detection during extreme weather.

Since 1966, Pakistan has received over $52 billion in loans and grants from ADB for various developmental projects.