K-Electric (KE) has secured $100 million in financing from the Dutch Development Bank (FMO) to enhance its transmission and distribution network spanning 6,500 square kilometers operational territory.
These funds will be channelled towards providing its customers with a secure, safe, uninterrupted, and reliable power supply.
The signing ceremony between KE and financing partners FMO and Proparco took place at the FMO’s Future of Energy Conference held in the Hague, Netherlands. Head of Treasury and Corporate Finance Muhammad Farrukh represented KE on the occasion and was joined by Ariane Ducreux, Head of Power and Infrastructure Division at Proparco and Huib-Jan de Ruijter, Chief Investment Officer from FMO along with senior management from both organizations.
The utility intends to use the funds to extend its infrastructure to previously unserved areas within its operational territory, bringing more residents into its growing customer base of 3.2 million. Alongside this, safety is a key priority of the investment plan that KE has outlined.
Approximately 12,000 pole mounted transformers (PMTs) of KE’s distribution high loss network have already been converted to insulated aerial bundled cables which provide power with safety, and the $100 million financing will accelerate the company’s efforts to convert its remaining network while removing hazards such as illegal hook connections (kundas) which create an unsafe environment for the public.
These funds will also enable KE to increase the capacity of its network to draw additional power from the National Grid for Karachi’s evolving requirements. Additionally, KE has envisaged the rehabilitation and enhancement of its transmission and distribution network in the remote areas of its licensed area in Balochistan.
Electricity demand in urban areas does not grow evenly, and power companies have to continually invest to ensure the infrastructure is capable of sustaining existing as well as future requirements. Part of this investment will be dedicated to its network of 71 grids and growing with a focus on augmentation.
A combination of load balancing on existing power transformers with the addition of new equipment will be achieved through the resources available via this partnership, resulting in improved reliability of supply for customers and supporting their future growth.