ISLAMABAD: The Asian Development Bank has approved $330 million in loans for Pakistan’s Second Power Transmission Strengthening Project, aimed at expanding the national transmission network and enabling the evacuation of low-cost renewable and hydropower to major demand centres.
According to ADB, the project will build a new 500-kilovolt transmission line of about 290 kilometres and upgrade key grid infrastructure supplying Islamabad and Faisalabad.
The lender said the investments will ease constraints in Pakistan’s north–south power corridor and allow the transfer of up to 3,200 megawatts of clean energy from hydropower plants in the north to load centres. ADB said this would reduce reliance on imported fuels and support a lower-cost power mix.
ADB’s financing package includes a $285 million loan from ordinary capital resources and a $45 million concessional loan.
National Grid Company of Pakistan Limited (NGC) — formerly NTDC — will execute the project. ADB said the financing will help NGC expand and modernise transmission assets, strengthen institutional capacity, improve financial management, and support outreach and gender-equity initiatives.
ADB Country Director Emma Fan said the project reflects the bank’s partnership with Pakistan to expand transmission capacity and integrate low-cost hydropower into the grid, with the stated aim of lowering system costs and improving access to clean electricity.
ADB said the project aligns with Pakistan’s National Power Policy 2021, Vision 2025 and the country’s 2021 Nationally Determined Contributions, and is expected to improve grid reliability and lower technical losses.
