In a letter to Secretary Economic Affairs Dr. Kazim Niaz, the World Bank’s Country Director for Pakistan, Bolormaa Amgaabazar, has called on Pakistan’s Power Division and three major Distribution Companies (Discos) to expedite the implementation of the Additional Financing (AF) for the Electricity Distribution Efficiency Improvement Project (EDEIP).
According to a news report, the World Bank warned that delays could jeopardise the effective utilisation of the $55 million credit facility.
The World Bank’s Country Director noted a notable increase in disbursements and commitments as of June 30, 2025. Disbursements reached $18.09 million (9.3%) compared to 3.6% in November 2024, while commitments grew to $18.28 million (20.7%) from 9.0%.
However, the Bank pointed out that quarterly targets had not been fully met due to factors like rebidding of key contracts, revisions in procurement strategy, and delays in grievance resolution.
The World Bank remains optimistic about the project’s trajectory and projects that by the end of FY26, disbursements and commitments would reach 30% and 95%, respectively.
While praising the efforts of the Economic Affairs Division and Power Division in securing the AF package, the World Bank emphasized that continued progress relies on fulfilling immediate conditions, including finalizing the Financing Agreement and triggering its effectiveness within 90 days of signing.
The three Discos—Hyderabad Electric Supply Company (HESCO), Multan Electric Power Company (MEPCO), and Peshawar Electric Supply Company (PESCO)—are urged to begin utilizing the new funds without delay. In May 2025, the Bank’s Appraisal Mission agreed with all stakeholders on a roadmap to overcome project obstacles and speed up implementation.
The World Bank stressed the need for the Project Enhancement Action Plan (PEAP) to be updated by July 21, 2025, to reflect the current situation and lessons learned.Â
Additionally, the Project Procurement Strategy for Development (PPSD) must be revised to align with the World Bank’s 2025 Procurement Regulations to address contract delays.
Improvements are also needed in procurement quality, bid evaluation speed, complaint management, and oversight of contract execution. The World Bank expects that all high-value contracts include rated criteria and early market engagement for transparency and efficiency. Revised procurement plans and bid documents are due by July 31, 2025.
