After six months of it being approved, Pakistan has received a $425 million loan from the World Bank to modernize its power transmission network. Pakistan’s electricity shortfall recently climbed to 4559 MW due to the transmission network’s inability to handle the increased power being generated from various new projects without incurring heavy losses.

The complete loan stands at $565 million, the additional $140 million being set aside for the Sindh Barrages Improvement Project. The loan, acquired on commercial terms, will be paid back over a period of 21 years, with a six-year grace period.

The total cost of the project is $536.33 million. The National Transmission and Dispatch Company will provide the remaining $111.33 million after the World Bank’s contribution.
The loan will be spent on modernizing existing 500 kV and 220 kV substations, building 36 new substations and rehabilitating 131 kilometers of transmission lines. This will allow the system to carry the over 20,000 MW of power currently being generated in Pakistan; presently it is only able to carry 15,000-17,000 MW at best.

As for the Sindh Barrages Improvement Project, that will entail improving the operations of the Sukkur, Guddu and Kotri Barrages and the modernization of the Sukkur and Guddu Barrages. The total cost of the project is $152.2 million, of which $12 million will be provided by the Sindh Government.