ISLAMABAD, Feb. 22 (Xinhua) -- The Asian Development Bank (ADB) is extending a loan of up to 800 million U.S. dollars over the period 2007-2016 for Pakistan's power transmission enhancement, the state-run Associated Press of Pakistan reported Thursday.

The assistance will be used in upgrading power distribution systems and transmission lines in order to increase system efficiency and stable supply of electricity to consumers besides major rehabilitation and infrastructure projects in the water sector, Director General of ADB's Central and West Asia Department Juan Miranda was quoted by APP as saying in Islamabad.

The ADB official said that in the first phase, the ADB will focus on financial assistance of extension of Pakistan's existing 220 KV and 500 KV sub-stations and construction of associated transmission lines.

Accordingly, ADB also agreed in principle to finance 10 MW pilot wind power plant and technical assistance for overall studies related to wind potential in various wind corridor of the country.

The bank also assured its strong support for financing mega water reservoir projects and infrastructure development projects in water sector.

Talking to the ADB delegation on Thursday, Pakistani Federal Minister of Water and Power, Liaquat Ali Tatoi said that Pakistan's power sector was currently undergoing reforms and restructuring and necessary ground work had been done in this regard, which were fully supported by the ADB.