World Bank Raises Concerns Over Electricity Distribution Project Implementation

The $195 million Electricity Distribution Efficiency Improvement Project (EDEIP) has been questioned by the World Bank, which claims that the project is behind schedule for a number of reasons, including the implementing agencies’ capacity and difficulties with land acquisition and procurement.

The Bank has given the EDEIP’s overall implementation status and progress towards achieving the project development target a fairly good rating. So far, $11.43 million, or 5.86 percent, of the $195 million has been disbursed.

The financing and project agreements were signed on December 23, 2021, following the project’s approval on December 17, 2021. The project will close on December 31, 2027, having gone into effect on August 15, 2022.

The project development goals are to advance the agenda for power sector reform and increase operational efficiency in certain areas of chosen distribution businesses.

According to official papers, the government has promised to restart the project by implementing a Project Implementation Enhancement Plan (PIEP). Realistic goals and milestones, important tasks, and necessary resources will all be tracked and monitored by the PIEP, which will be reviewed by the implementing agencies and reviewed with WB every month.

The initiative would help the three DISCOs—Hyderabad Electric Supply Company (HESCO), Multan Electric Power Company (MEPCO), and Peshawar Electric Supply Company (PESCO)—modernize their operations and management and increase operational efficiencies.

The following elements will be used to do this: (1) enhancing grid reliability; (2) updating management and operations; and (3) increasing capacity and providing technical support. By increasing the grid’s capacity, stability, and dependability as well as by implementing cutting-edge technology and equipment to enhance service delivery, the initiative will benefit these DISCOs’ customers.