Second Power Transmission Enhancement Investment Program (Tranche 4) (ADB-48078-006)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Pakistan
Geographic location where the impacts of the investment may be experienced.
Specific Location
Punjab, Sindh and Khyber Pakhtunkhwa provinces
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 8, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Islamic Republic of Pakistan - National Transmission and Despatch Company Ltd.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 189.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Feb 24, 2023

Disclosed by Bank Dec 8, 2022


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the ADB website:

In October 2022, ADB received the project financing request from the government of Pakistan to finance the enhancement of the NTDC transmission grid through a loan totaling $189 million from ADB's Ordinary Capital Resources (OCR). The proposed project will finance the construction of high-voltage transmission infrastructure and procurement of materials required for asset management and reduction of transmission system constraints.

Tranche 4 will support NTDC in meeting growing electricity demand efficiently and reliably at the load centers of Punjab, Sindh and Khyber Pakhtunkhwa provinces through the construction of the transmission network and augmentation of the existing substations. In addition, the equipment and goods to be procured under Tranche 4 will be utilized to restore the transmission lines damaged during the recent floods and the other damages to be identified in the disaster recovery framework under preparation by the government with the support from ADB, World Bank, EU, and the UN.

The project will have two outputs.

Output 1 will include six subprojects to add a total of 2,680 MVA in substation capacity and about 350 km of transmission lines and procurement of goods for operation and maintenance of NTDC assets to reduce the substations breakouts. An additional electricity sale of 13,481 GWh and associated transmission network loss reduction of 135 GWh are expected due to the project upon commissioning in 2026.

Output 2 will involve support to gender mainstreaming in NTDC and increasing number of female professionals. The project is linked and sequenced with the MFF earlier projects. The proposed project is expected to have the positive medium to long term impact on the overall power sector and economy of Pakistan by addressing the emerging needs of the transmission network post floods, scaling up the transmission infrastructure to be at par with the increasing generation capacity contributing to the revival of post pandemic and post-calamity economy of the country and reduction of the circular debt through reliable and unconstrained electricity transmission. The project is aligned with ADB Strategy 2030 operational cluster 3 on infrastructure and economic connectivity and supports four operational priorities: (i) addressing remaining poverty and reducing inequalities; (ii) accelerating progress in gender equality; (iii) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; and (iv) strengthening governance and institutional capacity. It is in line with ADB CPS, 2021-2025 for Pakistan. The proposed project supports Pakistan NDC mitigation measure on upgrading the transmission network and is aligned with the Paris Agreement criteria. It will contribute to the annual carbon dioxide emission savings of about 177,193 tons which accounts for energy efficiency and energy savings that will come from the use of high temperature low sag conductors and reduced technical losses. The proposed tranche 4 meets the selection criteria set forth in schedule 4 of the MFF FFA. The project is categorized effective gender mainstreaming aiming to support NTDC in institutionalizing gender focused aspects in its operations.

Investment Description
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Contact Information
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Responsible ADB Officer:

Mukhamedova, Takhmina
Central and West Asia Department - Energy Division, CWRD

National Transmission and Despatch Company Limited:

Address:
8th Floor, Shaheen Complex, Egerton Road
Lahore, Pakistan 54000

Telephone:
(0092) 42-99202597

 

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

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