Manila - The Asian Development Bank (ADB) said Friday it has approved an 810-million-dollar multi-tranche financing facility to help improve Pakistan's power sector.

The Manila-based ADB said the funding, to be released in several tranches over 10 years, will support Pakistan's power sector reform programme that is estimated to cost
5.2 billion dollars.

The programme "is designed to provide a safe, reliable supply of power and to meet an estimated annual 8-per-cent rise in gross domestic product growth from
2005-2015."

It also aims to expand power coverage to rural areas, the bank added.

Pakistan's national power grid is currently short of generating capacity and suffers from insufficiently maintained transmission and distribution systems that result in supply interruptions.

"System losses from distribution companies range from 33 per cent to 10 per cent, above international best practice," the bank noted.

Rune Stroem, an energy specialist at the ADB's Central and West Asia department, said the reform programme would help stabilize electricity supply to customers.

"A secure and predictable electricity supply will lead to social and economic benefits and improve conditions for schools, hospitals and other social services," he said. (dpa)