ISLAMABAD: World Bank Board on Saturday approved $ 195 million in funding to help Pakistan improve electricity distribution and implement energy sector reforms to improve quality of service to consumers.
The Electricity Distribution Efficiency Improvement Project (EDEIP) would help distribution companies improve supply and increase the reliability of the electricity grid.
It focuses on cost-cutting interventions to increase revenue collection and reduce losses, and on modernizing operations using technology and information systems. The project would also invest in climate resilient infrastructure, in particular grid stations and transmission lines, which are essential for distribution and utility services.
“The long-term financial viability of the electricity sector depends on improving the efficiency of the electricity distribution companies that provide electricity to consumers,” said Najy Benhassine, country director of the Bank. world for Pakistan. “These efforts will improve the operational and financial performance of some distribution companies in order to improve their bankability and, ultimately, generate greater participation from the private sector.”
EDEIP would support institutional reforms to improve governance and transparency and develop systems and practices to improve management performance and compliance with regulatory requirements. In addition, the project would help build the technical capacity of distribution companies by providing training programs, tools and equipment to improve staff performance in key utility operations.
“The project will focus on strengthening the operations and governance of Hyderabad Electric Supply Company, Multan Electric Power Company and Peshawar Electric Supply Company,” said Mohammad Saqib, project team leader. “Under the leadership of the Ministry of Energy, this project will strengthen market sector reforms, reduce transmission and distribution losses, and improve the financial performance of the sector. “
EDEIP complements the continued support of the World Bank’s electricity sector, including on the transmission grid, renewable energy generation, as well as reforms through the Pakistan Program for Affordable and Clean Energy (PACE ), which focuses on improving its financial viability and the transition to carbon energy. The project will increase the reliability of electricity services for residential, agricultural, commercial and industrial consumers in the project areas and help reduce carbon emissions. Pakistan has been a member of the World Bank since 1950. Since then the World Bank has provided aid of $ 40 billion. The World Bank’s program in Pakistan is governed by the Country Partnership Strategy for Fiscal Year 2015-2020 with four priority areas of engagement: energy, private sector development, inclusion and delivery. services. The current portfolio has 58 projects and a total commitment of $ 13.8 billion.