Second Power Distribution Strengthening Project (ADB-60043-001)

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.
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
Proposed
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."
Borrower
Government of Pakistan
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Communications
  • Energy
  • Infrastructure
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)
$ 130.00 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.
Loan Amount (USD)
$ 130.00 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.
Primary Source

Original disclosure @ ADB website

Updated in EWS Apr 1, 2026

Disclosed by Bank Mar 19, 2026


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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.

As stated by the ADB, the project will deploy Asset Performance Management Systems (APMS), Advanced Metering Infrastructure (AMI) and associated data management and analytics platforms to improve real-time network visibility, predictive maintenance, loss reduction, outage response, and billing integrity. By extending PDSP-1 interventions to the Peshawar Electric Supply Company (PESCO), the Hazara Electric Supply Company (HAZECO), Quetta Electric Supply Company (QESCO), and additional coverage in Lahore Electric Supply Company (LESCO) and Sukkur Electric Power Company (SEPCO), the project directly addresses identified gaps in system visibility, weak asset utilization, and limited adoption of modern operational technologies across the distribution companies.

PROJECT RATIONALE AND LINKAGE TO COUNTRY/REGIONAL STRATEGY

Pakistan's power sector faces persistent financial and operational stress, driven by high system costs, weak governance, and poor operational performance across the electricity value chain, with direct impacts on consumers in the form of frequent load shedding, unstable power supply, and uneven service quality across regions. Distribution companies (DISCOs) continue to exhibit high losses, weak revenue recovery, poor asset utilization, and limited digital visibility of network conditions, constraining effective maintenance planning and timely fault response, particularly in high-loss and underserved areas. These challenges are compounded by increasing disruptions caused by extreme weather events and limited deployment of modern operational technologies, including the absence of real-time monitoring and analytics to manage overloaded transformers, high-loss feeders, and service reliability. The project addresses these binding constraints by scaling up APMS and AMI to improve network visibility, enable predictive maintenance, reduce losses, and strengthen the operational accountability of DISCOs. This will improve reliability, lower system costs, support circular debt reduction, and enhance climate resilience of the distribution networks.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The ADB categorized the project E&S risks as follows:

  • Environment - B
  • Involuntary Resettlement - C
  • Indigenous Peoples - C
Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The implementing agencies will be: 

Hazara Electric Supply Company
Lahore Electric Supply Company
Peshawar electric Supply Company
Quetta Electric Supply Company
Sukkur Electric Power Company
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Hazara Electric Supply Company Contractor Energy
- - - - Lahore Electric Supply Company Contractor Energy
- - - - Peshawar Electric Supply Company Contractor Energy
- - - - Quetta Electric Supply Company Contractor Energy
- - - - Sukkur Electric Power Company Contractor Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ADB Team Leader:

Seung Duck Kim
Email: seungduckkim@adb.org 

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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How it works