ISLAMABAD: The World Bank has urged Pakistan’s Power Division and three major electricity distribution companies (Discos) to accelerate implementation of the Electricity Distribution Efficiency Improvement Project (EDEIP), warning that further delays could compromise effective use of the $55 million additional financing package.
In a letter addressed to Economic Affairs Secretary Dr. Kazim Niaz, the Bank’s new Country Director for Pakistan, Bolormaa Amgaabazar, acknowledged a notable increase in disbursements and commitments as of June 30, 2025. Disbursements had risen to $18.09 million (9.3%), up from 3.6% in November 2024, and commitments climbed to $18.28 million (20.7%), from 9.0%.
However, the Bank flagged that quarterly targets remained unmet, citing factors such as rebidding of key contracts, revisions in procurement strategies, and delays in resolving grievances, Business Recorder reported it today.
Despite these setbacks, the Bank expressed confidence that the project is back on track to meet its development objectives by closure, forecasting 30% disbursement and 95% commitment levels by the end of FY2026.
While commending the Economic Affairs and Power Divisions for securing the additional funding, the Bank stressed the urgency of activating the Financing Agreement, which must become effective within 90 days of signing. It called on the Discos—Hyderabad Electric Supply Company (HESCO), Multan Electric Power Company (MEPCO), and Peshawar Electric Supply Company (PESCO)—to immediately commence implementation activities.
During a May 2025 appraisal mission, stakeholders agreed on a roadmap to resolve project bottlenecks and boost delivery pace. A key condition now is updating the Project Enhancement Action Plan (PEAP) by July 21, to reflect on-ground realities and lessons learned. The Project Procurement Strategy for Development (PPSD) must also be revised to align with the Bank’s 2025 Procurement Regulations to address persistent delays.
The Bank emphasized improvements in procurement quality, bid evaluation timelines, complaint handling, and contract execution oversight. High-value tenders must include rated criteria and early market engagement to enhance transparency. Revised procurement plans and bid documents are due by July 31, 2025.
On the environmental and social compliance front, the Bank noted slow progress in preparing critical documents such as Environmental and Social Impact Assessments (ESIAs) and Resettlement Action Plans (RAPs). These must be submitted by the end of July, with delays likely to stall the broader project.
While the capacity of Project Implementation Units (PIUs) has improved—partly due to support from the Project Implementation and Management Support Consultant (PIMSC)—the Bank raised concerns over staff turnover and gaps in key positions. It urged all Discos to submit a detailed FY26 work plan for consultant engagement by July 31, and to fill all vacant PIU roles with qualified staff by August 31.
“With focused effort and leadership, the project can still meet its targets and deliver long-term impact on Pakistan’s power distribution performance,” Country Director Amgaabazar concluded, reaffirming the World Bank’s commitment to supporting Pakistan’s energy sector reforms.
