Karachi to get $250 million for upgrading power grid from US

WASHINGTON: Pakistan's energy-starved business hub of Karachi will get $250 million as aid to upgrade its power grid and transmission system from an overseas private investment wing of the US.

A memorandum of understanding (MOU) in this regard was signed between Overseas Private Investment Corporation (OPIC) and K-Electric (KE) Limited at a ceremony attended by Pakistan Finance Minister Ishaq Dar at the US Chamber of Commerce yesterday.

KE supplies electricity to the city of Karachi, as well as to nearby towns in the provinces of Balochistan and Sindh.

The OPIC loan will be used by KE to undertake a comprehensive and transformative upgrade of the K-Electric power grid, a statement said.

The project will increase KE transmission system capacity by 33 per cent (up to 1000 MVA), thereby allowing it to deliver more energy to its customers.

The project will also help support KE loss-reduction measures and will include an innovative smart grid initiative to more accurately distribute and utilise existing power, the statement said.

Karachi has been facing frequent power breakdowns due to technical faults. The power breakdowns made the life of Karachites totally miserable during the first week of Ramazan in May when around 1,300 people died due to an unusual heat wave.