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ADB Approves $330 Million to Unlock 3,200 MW of Hydropower on Pakistan’s Grid

The financing advances a 500 kV, 290 km line alongside National Grid Company upgrades to cut losses, boost reliability, shift the mix toward lower-cost power.

Overview

  • The Asian Development Bank cleared a $330 million package composed of a $285 million loan from ordinary capital resources plus a $45 million concessional tranche.
  • Funding will build a new 500‑kilovolt, roughly 290‑kilometer transmission line and upgrade grid infrastructure serving Islamabad and Faisalabad.
  • The investments target long‑standing north–south bottlenecks and are expected to enable transfer of up to 3,200 megawatts of hydropower from northern Pakistan.
  • The National Grid Company of Pakistan Limited, formerly NTDC, is the executing agency with support to strengthen institutional capacity, financial management, governance, public outreach, and gender equity.
  • ADB links the project to broader sector reforms focused on lower system costs and financial sustainability, noting persistent high costs and circular debt pressures.