The World Bank’s Board of Executive Directors approved $195 million in financing on Saturday to help Pakistan improve electricity distribution and implement energy sector reforms to improve customer service quality.
The Electricity Distribution Efficiency Improvement Project (EDEIP), according to a statement released by the international financial institution, would assist distribution businesses in improving operations in order to better control electricity supply and increase grid dependability.
It focuses on cost-cutting initiatives to boost revenue collection and reduce losses, as well as modernising operations through the use of technology and information systems, according to the report.
In addition, the project will invest in climate-resilient infrastructure, including grid stations and transmission lines, which are important to distribution and utility services.
“The long-term financial viability of the power industry hinges on improving the efficiency of electricity distribution businesses that distribute electricity to consumers,” stated World Bank Country Director for Pakistan Najy Benhassine.”
“These measures will improve the operational and financial performance of select distribution businesses, enhancing their bankability and resulting in increased private sector engagement,” says the report “he stated
The EDEIP would, according to the plan, promote institutional reforms to increase governance and transparency, as well as build systems and practises to improve management performance and regulatory compliance.
“In addition, the initiative will aid in the development of distribution businesses’ technical capacity by providing training programmes, tools, and equipment to boost staff performance in essential utility activities,” according to the release.
“The project will focus on strengthening operations and governance of Hyderabad Electric Supply Company, Multan Electric Power Company, and Peshawar Electric Supply Company,” stated project leader Mohammad Saqib Task.
“This project will support market-sector reforms, reduce transmission and distribution losses, and improve the sector’s financial performance under the direction of the Ministry of Energy,” the project head stated.
The EDEIP is a complement to the World Bank’s ongoing power sector assistance, which includes transmission network, renewable energy generation, and reforms under the Pakistan Programme for Affordable and Clean Energy (PACE), which focuses on improving financial viability and transitioning to low-carbon energy.
The project, according to the World Bank, will improve the reliability of power services for residential, agricultural, commercial, and industrial sector consumers in project areas while also helping to reduce carbon emissions.
