T-3 subprojects: Approval of $243.35m 3rd tranche next month: ADB

RECORDER REPORT

FAISALABAD: Asian Development Bank (ADB) has informed that the approval of third tranche $ 243.35 million for "MFF-Power Transmission and Distribution Enhancement T3" project will be decided in next month by board meeting.

ADB will provide this loan from its Ordinary Capital Resources to National Transmission and Despatch Company (NTDC) to increased transmission capacity and reliable and quality power supply. Primary transmission systems augmented and expanded - system bottlenecks would also be removed, while power transmission capacity enhanced through system expansion and augmentation, and electricity from new power stations evacuated to the load centres in Sindh and Punjab.

According to ADB project report, the Tranche-3 subprojects are part of Pakistan's integrated power transmission system development plan. The investments will enhance the efficiency of the overall power transmission system and provide an adequate and reliable power supply to a greater number of industrial, commercial and residential consumers.

The Tranche 3 subprojects will improve power transmission infrastructure through development of additional 500 kV transmission lines and grid substations facilities, and relieve the power system bottlenecks. Tranche-3 will specifically to increase interregional transmission capacity and to evacuate power from new power stations to the load centers.

The ADB report mentioned that the outputs of the subprojects in Tranche-3 include (i) addition of approximately 600 km 500 kV transmission lines, (ii) commission of one new 500 kV grid station and expansion of four existing 500 kV grid substations, (iii) improved security of supply to customers by moving towards compliance with regulatory security standards governing planning and operation, and (iv) improved reliability of the primary transmission system. Pakistan's power system continues to operate under stress conditions.

ADB report pointed out that the transmission network, the power system's backbone, requires renovation and expansion in order to meet the objective to supply reliable and high-quality power and meet rising demand from industrial, commercial, agricultural, and domestic customers.

It may be recalled that Pakistan government has requested ADB to finance construction of a circuit of 500 kV transmission line of about 600 kilometer (km) and a new 500 kV Grid Substation at Moro, under Tranche-3. The proposed subprojects will increase transmission capacity and improve efficiency and security of supply in the Sindh and Punjab provinces of Pakistan. The proposed subprojects will evacuate the power generated from the Independent Power Producers (IPPs) which are expected to be in commission by 2013-2015. These investments are consistent with the government's strategy to achieve the following outcomes: (i) a more efficient power system; (ii) high-quality power supply through a more reliable and stable system; (iii) greater geographic coverage of power supply; and (iv) greater access to affordable electricity, by bringing additions of generation capacity and energy to load centers.