World Bank flags delays in NTDC contract approvals, warns of project risks

Concerns raised over potential implementation delays and legal risks due to prolonged approval processes in Pakistan's National Transmission Modernisation Project. 

The World Bank has raised concerns over delays in the approval of contract extensions for the National Transmission Modernisation Project-1 (NTMP-1), cautioning that these delays could lead to project implementation issues and legal complications. 

According to a news report, the global bank emphasised that prolonged delays might result in work being conducted outside the necessary legal frameworks and without the requisite insurance coverage.

During a recent technical mission led by Muhammad Anis, which took place from July 22 to August 3, 2024, the World Bank team commended the NTDC and the Power Division for their ongoing efforts to advance the NTMP-1. The project aims to increase the capacity and reliability of Pakistan’s national transmission system and modernize NTDC’s key business processes.

However, the bank’s team expressed concerns over the delays in contract extensions, noting that several contracts have been awaiting approval for more than 12 months. 

The team warned that these delays could lead to further implementation setbacks and urged the Power Division and NTDC to expedite the review and approval processes, with a deadline set for mid-September 2024.

The mission also highlighted issues related to the Islamabad West Substation (IWS) and the 500-KV Nowshera Substation. While the IWS substation contract was declared effective during the mission, pending land compensation payments and right-of-way issues for the Nowshera Substation’s transmission line were cited as potential bottlenecks. The World Bank called on NTDC to address these issues promptly to ensure project timelines are met.

Monitoring Desk
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