ISLAMABAD: The Asian Development Bank and the government signed on Wednesday two loan agreements worth $513 million for improving irrigation and power transmission systems.

Under the agreements, ADB will invest $270 million for construction of new Khanki Barrage and $243 million for improving thecountry’s power transmission systems.

ADB Country Director Werner Liepach, Economic Affairs Division Secretary Abdul Wajid Rana and Punjab Irrigation Secretary Irfan Illahi signed the agreements.

Current estimates suggest that about 447 million cubic metres of water are lost each year due to the existing barrage’s shutter gates.

The new barrage will connect the Lower Chenab Canal with a new head regulator through a lead channel, ensuring a reliable flow of water to the canal and increasing the flood-bearing capacity of the structure.

The power enhancement programme will be completed by the end of 2015 to enhance the efficiency of the overall power transmission system and provide an adequate and reliable power supply to a greater number of commercial, industrial and residential consumers.

The ADB loan will be utilised for the construction of a new 600km and 600KV transmission line from Jamshoro to Moro, Dadu and Rahim Yar Khan, a new 500KV grid station at Moro and expansion of three existing 500KV grid stations at Jamshoro, Dadu and Rahim Yar Khan.

A new 125km and 220KV transmission line from Uch-II power plant to the 220KV grid station at Sibi, and a connection between Uch-I and Uch-II power plants will also be constructed. Further, the loan will ensure construction of a new 200KV grid station at Mansehra.