The Asian Development Bank has signed an agreement to invest USD 242 million in improving power distribution system in Pakistan.

The investment is part of USD 810 million Power Distribution Enhancement Investment Program approved in 2008. The mult tranche financing facility targets investment in priority areas to reduce power losses and increase the reliability of the power distribution system.

Mr Rune Stroem country director at ADB and Mr Sibtain Fazal Halim secretary economic affairs division signed the agreement. Deputy Director General of ADB's Central West Regional Department Mr Werner Liepach was also present on the occasion.

Mr Rune Stroem said that energy conservation and energy efficiency is the fastest and cheapest way of increasing electricity supply. This project will not only reduce electricity lost during delivery to the customers but also improve the quality of service by helping to get rid of technical bottlenecks.

The project comprises physical investments in secondary transmission grid and will include addition of 3,380 megavolt amperes of transformer capacity and 387 kilometers of new distribution lines.

(Source from www.dawn.com)