ISLAMABAD: Loan and project agreements for fourth tranche of $248 million were signed on Friday with the Asian Development Bank (ADB) for Power Transmission Enhancement Investment Programme.

The amount will help improve energy supply and security by reducing transmission infrastructure bottlenecks and transmission losses and expanding the national transmission system by connecting generation sources and load centres.

The ADB has been providing, a multi-tranche financing facility (MFF) amounting to $800m for power transmission enhancement investment programme since 2006. The project is scheduled to be completed by the end of 2016.

ADB Country Director Werner E Liepach and Secretary of Economic Affairs Division Saleem Sethi signed the loan agreement. The investment programme has supported rehabilitation, augmentation and expansion of transmission substations, transmission lines of 220KV and above installation of static var compensator (SVC) equipment.

The fourth tranche is the last tranche of transmission MFF, under which four new grid stations of 220KV will be constructed in Dera Ismail Khan, Nowshera, Lalian and Chakdra.

A new transmission line of 500KV will also be constructed for dispersal of power from 747MW power plant at Guddu.

Published in Dawn December 13th , 2014