Pakistan: Power Transmission Enhancement Investment Program—Tranche 1 | Asian Development Bank

Pakistan: Power Transmission Enhancement Investment Program—Tranche 1

Evaluation Document | 29 June 2018

The National Transmission & Despatch Company (NTDC), a state-owned corporation began commercial operations in late 1998. It took over all properties, rights and assets, obligations, and liabilities of the 220 kilovolt (kV) and 500 kV grid stations and transmission lines and/or network owned by the Pakistan Water and Power Development Authority (WAPDA). The National Electric Power Regulatory Authority (NEPRA) regulates NTDC’s tariff. NTDC’s investment needs to overcome existing capacity constraints was estimated to be $3.9 billion during the 10-year period of FY2007–FY2016.

ADB approved a multitranche financing facility (MFF) of $800 million under a framework financing agreement with the Government of Pakistan on 13 December 2006, or about 20% of NTDC’s required investment. The program was to be implemented in four tranches. Tranche 1 (the project) was financed by a loan of $226 million from ADB’s ordinary capital resources (OCR), and included high priority subprojects to overcome existing transmission constraints. It was to entail installation of 500 kV and 220 kV4 transformers with an aggregate capacity of 6,125 megavolt-ampere (MVA) at 18 locations nationwide, and three relatively short transmission lines totaling 50 kilometers. An investment program support component was included in tranche 1, funded by a loan of SDR6.8 million ($10 million equivalent) from ADB’s Asian Development Fund (ADF). The loan remained open for the duration of the MFF. The program proposal was prepared under a project preparatory technical assistance, which was approved in 2005.

This report validates the completion report's assessment of the program. IED overall assessment: Successful