📋 Tender Overview
Project Name
Second Power Transmission Strengthening Project
Project Number
59002-001
Country / Economy
Pakistan
Project Status
Proposed
Project Type / Modality of Assistance
Loan
Source of Funding / Amount
Loan: Second Power Transmission Strengthening Project
Ordinary capital resources US$ 400.00 million
Sector / Subsector
Energy / Electricity transmission and distribution
Gender
Effective gender mainstreaming
Description
The project will finance the construction of a 500 kV double-circuit (D/C) transmission line, approximately 270 kilometers in length, using quad-bundled Drake conductors. The line will loop in and out of the existing 500 kV Ghazi BarothaRewat single-circuit transmission line at the Faisalabad West substation. The project also includes the installation of two 500 kV line bays and two 111 MVAR shunt reactors at Faisalabad West, along with one 111 MVAR shunt reactor each at the 500 kV Ghazi Barotha and 500 kV Islamabad West substations to enhance system stability and voltage regulation.
Project Rationale and Linkage to Country/Regional Strategy
Pakistan's energy sector faces significant challenges, including a reliance on costly imported fuels, outdated infrastructure, circular debt, and inefficiencies in power generation, transmission, and distribution. The transmission subsector, in particular, is burdened by aging infrastructure that struggles to meet growing demand, resulting in frequent power shortages and high transmission losses. Additionally, technical and non-technical losses in the system, coupled with low tariff collection rates by distribution companies (DISCOs), exacerbate the financial instability of the sector. The existing transmission network is also often inadequate to support new power generation, especially with the increasing share of renewable and hydroelectric generation in the energy mix. Addressing these issues requires a comprehensive overhaul of the transmission infrastructure, improved operational efficiency, and stronger financial management to ensure reliable, cost-effective power delivery across the country.
The northern National Grid Company (NGC) (formerly National Transmission & Despatch Compnay (NTDC)) network currently has over 10,000 MW of hydroelectric capacity, with power flowing to mid-country load centers through the 500 kV network during the high-water months of summer. This transmission infrastructure is sufficient for existing generation. However, numerous planned and under-construction hydroelectric projects in Khyber Pakhtunkhwa will significantly increase generation. As a result, the current transmission system will be inadequate to handle the higher power flows, necessitating urgent reinforcement of the 500 kV interface to ensure reliable and secure power supply.
The proposed project is a high priority for the government, aimed at addressing the sector challenges and ensuring a reliable power supply. It will meet the growing power transfer needs, reduce th
