ISLAMABAD: The Asian Development Bank (ADB) is reportedly under pressure following queries raised regarding Rs 59 billion worth of projects in power distribution companies (Discos) during a meeting of the Central Development Working Party (CDWP), Newzshewz has reliably learned.
The CDWP has called for a comprehensive techno-economic feasibility study for the entire scope of PC-1s of ADB-funded power strengthening projects in three distribution companies (Discos) — LESCO, MEPCO, and SEPCO — worth Rs 59 billion. This request comes after the Project Director of PD&SI claimed that the APMS meters only offer protection functions by tripping overloaded or unbalanced transformers but cannot control theft.
In response to the CDWP meeting minutes and related media reports, ADB issued a clarification regarding the power distribution strengthening project. The Bank highlighted the historical context of the project’s development and the collaborative efforts between the Power Division, Discos, and ADB.
Pakistan’s power distribution sector has long faced challenges, including high technical losses and low collection rates, which have significantly contributed to circular debt and threatened the sector’s sustainability. Recognizing the urgency of addressing these issues, the government identified the need for critical investments in infrastructure, advanced technologies, and policy measures to modernize and strengthen the sector.
The origins of the project date back to the government’s funding request for implementing Asset Performance Monitoring Systems (APMS) within the distribution sector. ADB initiated its engagement with the Ministry of Energy in response to this request, focusing on addressing the challenges faced by four priority Discos — LESCO, MEPCO, SEPCO, and HESCO — as identified by the Power Division.
Through extensive consultations, ADB worked closely with these Discos to assess their specific needs. LESCO emphasized the need for Secondary Transmission Grid (STG) materials to upgrade grid stations and integrate 11 kV feeders with APMS. MEPCO sought support for APMS and Advanced Metering Infrastructure (AMI), complementing ongoing assistance from the World Bank. SEPCO requested interventions such as 66 kV grid station upgrades, feeder line bifurcation, and APMS/AMI integration. HESCO prioritized STG upgrades and overhead transmission line improvements, which required additional preparation time.
The project was designed based on these identified needs, reflecting its demand-driven nature and alignment with the government’s priorities. To address capacity gaps and ensure rigor, ADB used its technical assistance grant resources to engage “MRC Consultations & Transmission Advisors (Spain)” through an open international competitive bidding process, with the Power Division providing its no-objection to the selection. MRC assisted Discos in preparing techno-economic feasibility studies, providing international expertise in project design, and validating PC-1 documents, ensuring the project’s alignment with national requirements. All feasibility studies have been shared with the Power Division and the respective Discos, and the scopes have been validated in accordance with the Prime Minister’s directive for third-party validation.
“We hope this provides the necessary clarification on the queries raised during the CDWP meeting, particularly addressing concerns that the feasibility study was conducted solely by ADB,” said Seung Duck Kim, Principal Energy Specialist. He has requested the Power Division to seek approval from the Executive Committee of the National Economic Council (ECNEC).
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