WB to finance $195 million project for efficient electricity distribution

The World Bank has signed Electricity Distribution Efficiency Improvement Project worth $195 million with the government of Pakistan to increase distribution efficiency and decrease line losses.

Mian Asad Hayaud Din, secretary, Economic Affairs Division signed the loan agreement on behalf of the Government of Pakistan while Anjum Ahmad, operations manager, World Bank signed the agreements on behalf of the World Bank.

The “Electricity Distribution Efficiency Improvement Project” aims to support investment programmes of three DISCOs’ to improve reliability of electricity supply and reduce technical losses through; (a) new grid stations; (b) augmentation and upgradation of existing grid stations; (c) construction, rehabilitation of transmission lines, modernization of DISCOs operations and management functions, revenue and equipment protection programme, and improving operations and maintenance. The project will also support the Power Division in fulfilling its policy mandate under the National Electricity Policy, 2021 and implement power sector reforms.

“The long-term financial viability of the power sector depends on improving the efficiency of electricity distribution companies that deliver electricity to consumers,” said Najy Benhassine, World Bank country director for Pakistan. “These efforts will improve the operational and financial performance of select distribution companies to improve their bankability and ultimately generate more private sector participation.”