Pakistan

Pakistan

K-Electric, Pakistan

Improving the safety and reliability of power and electricity among the lower income population of Karachi.

$47m
Partial credit guarantee

$185,000
PIDG TA grant


Background

In Pakistan, almost a fifth of electricity is lost during the transmission and distribution to consumers. The losses are both technical, due to poor infrastructure, and non-technical, related to faulty metering and theft.

The industry has high health and safety risks for workers, which require high standards to avoid serious accidents. The labour force participation of women in Pakistan is over three times lower than men.

In Pakistan, local banks are only able to lend in local currency. However, the capex investments required to upgrade the network, needed funding in USD, because the raw materials are imported from dollarised market.


Project

GuarantCo has worked with SCB to provide K-Electric with a hybrid USD/PKR financing structure that will make electricity safer to access in the long term.

K-Electric wants to use aerial bundled cables (ABC) which are insulated to increase the safety and the reliability of supply and voltage.

TA is providing a grant to teach segments of the community about the hazards created by illegal electricity infrastructure.

K-Electric have purposely worked to increase women’s representation in roles which were previously exclusive to men.


Impact

The transaction allows K-Electric to access cheaper funding than using the derivative market, improving the affordability of the service for end users. K-Electric will be able to reach their target of reducing their transmission and distribution losses to 13.4% by 2023.

Since 2009, power theft has declined and incidents resulting from stealing electricity have been reduced. With TA funding a wider audience can be educated in a shorter period of time to create awareness on safety threats. K-Electric’s openly inclusive attitude allows women to break stereotypes and reach higher paid and more skilled roles.