40943-014: PAK: KARACHI ELECTRIC SUPPLY COMPANY LTD. (KESC) POST-PRIVATIZATION REHABILITATION, UPGRADE & EXPANSION

Project Data Sheet (PDS): Overview


Description

The assistance finances the turnaround of KESC a loss-making, integrated utility with an exclusive license to supply electric power to the city of Karachi and surrounding areas. Following nationalization of KESC in the 1950's, ADB has supported KESC with several loans over the last 30 years through its public sector operations. Initially, ADB's assistance was mainly directed towards upgrading of physical assets, but with an acknowledged lack of focus on governance and management reform. Later efforts have recognized this, and privatization of KESC became a priority in later ADB interventions in the sector. After KESC s privatization in late 2005, assisted by ADB, its new owners have embarked on a three-tier turnaround strategy based on (i) organizational restructuring and development; (ii) system balancing, modernization, and replacement; and (iii) generation capacity enhancement. The turnaround strategy requires capital expenditure during FY2007 FY2009 of approximately PRs52 billion ($809 million): (i) generation rehabilitation and expansion, approximately PRs34 billion ($525 million); (ii) transmission and distribution (T&D) network investments, PRs17 billion ($268 million); and (iii) upgrading of commercial systems and rehabilitation of existing generation facilities, PRs1 billion ($16 million). Read More

Country Pakistan
Borrower/Equity Investment Name K-ELECTRIC LIMITED (FORMERLY KARACHI ELECTRIC SUPPLY C
Project Number 40943-014
Project Type or Modality of Assistance PS
Financing Private sector (Nonsovereign)
Status Approved
Approval Number 7254
Approval Date 29 May 2007
Geographical Location Karachi, Pakistan
Sector / Subsector Classification Energy
/ Electricity Transmission and Distribution
Thematic Classification Economic growth
Private sector development
Safeguard Categories Environment: B
Resettlement: C
Indigenous People: C

 

 

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Project Data Sheets (PDS)

Responsible ADB Officer
Shinya Kondo
Email contact

Responsible ADB Department
Private Sector Operations Department

Responsible ADB Divisions
Infrastructure Finance Division 1

PDS Creation Date
14 Jun 2007

Last PDS Update
26 Sep 2013

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