Islamabad, Dec 10: The World Bank has raised concerns over the slow progress of the $195 million Electricity Distribution Efficiency Improvement Project (EDEIP), citing delays due to challenges such as the capacity of implementing agencies, land acquisition issues, and procurement hurdles.
The Bank has rated the overall implementation progress and the achievement of project development objectives as moderately satisfactory. Despite the large budget, only 5.86% of the total, amounting to $11.43 million, has been disbursed so far.
Approved on December 17, 2021, with loan and project agreements signed shortly thereafter, the project became effective on August 15, 2022, with a planned completion date of December 31, 2027. Its main objectives are to enhance operational efficiency in specific areas of selected distribution companies and contribute to broader power sector reforms.
In response to these delays, the government has committed to implementing a Project Implementation Enhancement Plan (PIEP), which will set realistic targets, milestones, and track key activities and resources. The plan will be reviewed monthly by both the implementing agencies and the World Bank.
The project aims to modernize and improve the operations of three distribution companies—Hyderabad Electric Supply Company (HESCO), Multan Electric Power Company (MEPCO), and Peshawar Electric Supply Company (PESCO). Key components of the project include enhancing grid reliability, modernizing operations and management, and providing capacity building and technical assistance. The initiative is expected to benefit consumers by improving grid stability, reliability, and capacity, as well as deploying modern information systems and equipment to enhance service delivery.
