|
Description |
The objective of the proposed multitranche financing facility (MFF) is to improve Pakistan's power transmission infrastructure and management. Tranche 1 outputs (subprojects) are for construction of new transmission lines, extension and augmentation of existing substations, and installation of shunt reactor and replacement of protection equipment at 11 grid stations. Tranche 1 includes assistance on the preparation of a safety manual, professional third party project management and information system, capacity development program tailored for the investment program requirements, and an action plan to meet the government's quota for the employment of 10% women. |
|
Project Rationale and Linkage to Country/Regional Strategy |
A reliable and sustainable energy sector is essential to the economic growth and wellbeing of Pakistan. Load shedding has become common and severe, leading to civil strife and factory closures. Over one-third of the population does not have access to grid electricity which lessens opportunities for inclusive growth. Chronic power shortages are estimated to have reduced gross domestic product (GDP) growth by at least 2% in 2012 and 2013, and are considered the major cause of the slowdown in large-scale manufacturing, which grew at only 1.1% in fiscal year (FY) 2012 and 4.1% in FY2013. |
|
Impact |
(i) Transmission infrastructure and management improved, and
(ii) Energy market transparency and efficiency improved.
|
|
