ISLAMABAD: The Japan government has announced to provide a concessional loan of 2.665 billion yen (approximately 24 million USD) to the government of Pakistan for Islamabad and Burhan Transmission Line Reinforcement Project.
The notes to this effect were signed and exchanged between Ambassador of Japan to Pakistan, Takashi Kurai and Additional Secretary for Economic Affairs Division, Amin Anjum Assad.
The transmission line stabilization project would be completed in the capital territory by 2020. State Minister for Foreign Affairs of Japan, Nobuo Kishi and Federal Minister for Water and Power, Khawaja Muhammad Asif were also present on the occasion.
The financing of the project is Japanese ODA (Official Development Assistance) loan (also called Yen Loan), which is long-term low interest rate loan advanced to the developing countries and have the liability of being paid back.
In his remarks, Nobuo Kishi, expressing high respect to the leadership of Pakistan, stated that Khawaja Muhammad Asif has been making serious effort towards the power sector reforms, which are of crucial importance as a foundation for the overall development of Pakistan.
He said so far the government of Japan has been providing assistance to Pakistan in the power sector through the Energy Sector Reform Programme and the National Transmission Lines and Grid Stations Strengthening Project.
“I sincerely hope that this loan will not only contribute to bridging the current gap of supply and demand for electricity in Pakistan but will also to the further development of Pakistani economy as a whole.”
The objective of this loan is to reinforce existing 220kv transmission lines between Tarbela hydropower plant and the Burhan substation, which will enable it to supply more than 3 times more electricity as compared to its existing capacity.
Japan has been extending active support to the energy sector of Pakistan over the last three decades. It includes, as one of the recent examples, 5 billion yen (approximately US $ 43 million) for Energy Sector Reforms Programme that was co-financed by the Asian Development Bank and the World Bank in February, 2016.
Further, Japan financed the construction of power generation facilities such as the thermal power stations in Bin Qasim and Jamshoro, and the Ghazi Barotha Hydropower Project, and supported the National Transmission and Dispatch Company to expand its grid systems by building grid stations, networking transmission lines and upgrading training facilities.
The government of Japan is committed to continue providing necessary assistance for Pakistan’s energy sector in the future as well. Pakistan is the 6th largest population in the world which is about 190 million and the demand for electricity is growing because of the continuous increase of population and economic activities.
However, in recent years, the country has been facing a serious supply-demand gap due to the deterioration of the electricity infrastructures and transmission and distribution losses, which results in nation-wide load shedding.
Enhancement of generation capacity and transmission network facilities is imperative to meet the growing demand and to decrease load shedding. It may be pertinent to note here that the World Bank has been supporting the expansion of Tarbela hydro power plant, the biggest hydroelectric generating plant in Pakistan to arrest the supply-demand gap situation.
Expansion in the generating plant would help increase the output by 1410MW to the present generation capacity. The ODA Loan project would not only help stabilize the power supply to the capital territory and surrounding areas- the hub of socio-economic activities at present but would also expected to decrease the transmission loss rate through introduction of low loss conductor for the first time in Pakistan.
