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Pakistan, World Bank ink $195mn agreement to improve electricity distribution

Updated 23 Dec, 2021
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Pakistani authorities signed a financing agreement of Electricity Distribution Efficiency Improvement Project (EDEIP) worth $195 million with the World Bank on Thursday. The financing will support Pakistan in improving electricity distribution and implementing energy sector reforms to increase service quality for consumers.

The agreement was signed by Secretary Economic Affairs Division Mian Asad Hayaud Din on behalf of the Government of Pakistan. Operations Manager World Bank Anjum Ahmad signed the agreement on behalf of the World Bank, stated Radio Pakistan.

The objectives are to improve operational efficiency in targeted areas of three electricity distribution companies, including HESCO, MEPCO and PESCO; and achieve progress on the power sector reform agenda.

The Electricity Distribution Efficiency Improvement Project (EDEIP) will help distribution companies improve operations to manage the electricity supply more efficiently and increase the reliability of the electrical grid.

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Days ago, the ADB approved financing worth $195 million for EDEIP. The project focuses on cost-saving interventions to increase revenue collection and reduce losses, and on modernising operations by employing technology and information systems.

The project will also invest in climate-resilient infrastructure, particularly grid stations and transmission lines, which are critical to distribution and utility services.

“The long-term financial viability of the power sector depends on improving the efficiency of electricity distribution companies that deliver electricity to consumers,” Najy Benhassine, World Bank Country Director for Pakistan stated then.

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“These efforts will improve the operational and financial performance of select distribution companies to improve their bankability and ultimately, generate more private sector participation.”

The EDEIP will support institutional reforms to improve governance and transparency and will develop systems and practices to improve managerial performance and compliance with regulatory requirements. In addition, the project will help build the technical capacity of the distribution companies by providing training programmes, tools, and equipment to improve staff performance in key utility operations.

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