World Bank asks Pakistan to amend agreements for newly created entities under power transmission project

The World Bank has requested amendments to existing project agreements for the National Transmission and Dispatch Company (NTDC) to reflect its recent restructuring into three separate entities: the Independent System Market Operator, the National Grid Company of Pakistan, and the Energy Infrastructure and Development Management Company. This change necessitates formal notification and amendments to the legal documentation, according to a statement from the World Bank, BR reported. 

In a briefing to the National Assembly Standing Committee on Economic Affairs, the World Bank’s Operations Manager for Pakistan, Gailius J. Draugelis, outlined the current status of the National Transmission Modernization I Project, noting the project’s overall implementation progress as “Moderately Satisfactory.” 

A recent World Bank mission, which visited Pakistan in June 2025, confirmed that most components, with the exception of the Islamabad West Substation (IWS), are progressing well and are expected to be completed by the end of 2025.

The IWS contract, which has faced delays, is now expected to be completed by November 2026. As a result, the project’s closing date has been extended to December 31, 2026, in line with the contractor’s 30-month schedule. The Bank emphasized that no further extensions would be granted beyond 2026.

While other sub-projects under the National Transmission Modernization I Project are in advanced stages, the World Bank highlighted issues with the timely completion of some contracts, including five under the Enterprise Resource Planning (ERP) component. The Bank urged regular coordination among contractors, consultants, and NTDC teams to ensure smooth project execution.

Additionally, NTDC has been advised to resolve land acquisition issues for the 500kV Nowshera transmission line and complete pending compensation payments for the IWS project by August 2025.

Despite these challenges, the World Bank commended NTDC and the Government of Pakistan for resolving security issues in Balochistan that had previously delayed construction at several substations.