Will help power utility increase transmission capacity by 33%, reduce load-shedding
K-Electric Limited and the US Overseas Private Investment Corporation (OPIC) executed a commitment letter for a $250-million, 10-year financing project.
The signing ceremony was held at the US Chamber of Commerce and witnessed by Finance Minister Mohammad Ishaq Dar who is visiting the US along with Prime Minister Nawaz Sharif, said a press released from Washington DC on Thursday.
The OPIC loan, which has been facilitated by Citi Bank, will be used by K-Electric to undertake a comprehensive and transformative upgrade of the K-Electric power grid. It is expected that the K-Electric grid strengthening project will significantly improve the reliability, stability and efficiency of the K-Electric power network and increase transmission system capacity by 33% (up to 1,000MVA), thereby allowing it to deliver more electricity to customers.
Dar, on the occasion, stated that energy is among the top most priority areas of the government.
“The government is not only initiating projects in the public sector but is also giving incentives to the private sector to invest in energy projects,” said Dar, expressing hope that K-Electric would use this loan to improve its transmission system and reduce load shedding for the benefit of the people of Karachi.
Published in The Express Tribune, October 23rd, 2015.
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