ISLAMABAD, March 19: A third attempt to restructure National Transmission Modernization Project-I (NTMP-I), will be led by another World Bank project.
This will extend the project’s timeline by 20 months, from April 30, 2025, to December 31, 2026.
This restructuring is part of a two-phase extension plan aimed at improving the national transmission network’s capacity and reliability and modernizing the operational processes of the National Transmission and Dispatch Company (NTDC).
Initially approved by the World Bank’s Board of Directors in December 2017, NTMP-I includes three main components. Project has already cost of $ 425 million.
These are the expansion and upgrade of the transmission network, the deployment of an Enterprise Resource Planning (ERP) system for NTDC, and the enhancement of NTDC’s planning, operational, and maintenance capabilities.
Significant Delays in Energy Sector Restructuring Project
The project has faced significant delays, primarily due to the COVID-19 pandemic, issues with land acquisition, and internal processing bottlenecks within NTDC.
Despite these challenges, substantial progress has been made.
The project has so far disbursed 39.1% of the allocated funds, with expectations to exceed 60% by the end of 2025.
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The most significant contract, worth $180 million for the IWS package, was awarded in May 2024, and construction is on track to be completed by December 2026.
Key activities under the project include expanding substations, constructing new transmission lines, and installing the ERP system, which is expected to go live by December 2025.
Contractors Need Time in Energy Sector Restructuring
The main reason for this restructuring is to allow ample time for the completion of the IWS contract and other essential contracts, such as the Nowshera substation.
The IWS contract, in particular, is crucial for facilitating the evacuation of power from the Dasu Hydropower Plant, slated for commissioning in late 2027.
The World Bank has noted that progress has been made in land acquisition, with over 93% of the necessary compensation payments for the IWS project completed, and the remaining cases are expected to be resolved within the extended timeline.
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This extension is intended to ensure the successful completion of the IWS and other critical components under the project.
While the project’s development objective and implementation progress are currently rated as “moderately satisfactory,” the restructuring is expected to address outstanding issues and help the project meet its goals.
