The Asian Development Bank (ADB) issued $810 million in funding to help Pakistan improve its grid infrastructure.In a press statement, the ADB said the loan will be used to upgrade power transmission systems in the South Asian state.
In addition, the money will be channeled towards ensuring Pakistan meets its increasing demand of electricity.
Megan Wolf, energy specialist at ADB in Central and West Asia, said: “A reliable and sustainable power sector is critical to the economic growth and wellbeing of Pakistan.
“Fast implementation of this facility and related reforms to alleviate power shortages will improve the prospects for the economy,” added Wolf.
The funding will be used through the National Transmission and Despatch Company and the country’s commercial operator Central Power Purchasing Agency through to 2026.
The projects to benefit from the funding falls under Pakistan’s Vision 2025 programme aiming to improve power demand management and generation to curb energy disruptions. [Pakistan approves smart meter projects for ADB funding].
Energy management funding
The news follows early August's announcement by the Australian government that it will invest AUS$11 million ($8,394,815) to enhance water and energy management in Pakistan.
Australia’s commitment will see the country investing the money toward phase two of Pakistan’s programme, Sustainable Development Investment Portfolio (SDIP), over the next four years.
The SDIP is a 12-year project that begun in 2013 with the aim of improving the management of energy and water resources in South Asian countries through regional and international co-operations.
Phase two of the SDIP will focus on leveraging innovative solutions to enhance water and energy management in Pakistan communities in the Indus Basin, reported a local publication.
In phase one of the project, Australia invested AUS$4 million ($3,052,660).
Commenting on the development, Margaret Adamson, Australia’s ambassador in Pakistan, said the funding aims to help the South Asian state to cope with the growing demand of water and energy due to a rapid increase in population.
Image credit: evadapk.com.