World Bank approves $ 195 million loan to improve electricity and distribution for consumers

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WASHINGTON, December 17, 2021—The World Bank Board of Directors today approved $ 195 million in funding to help Pakistan improve electricity distribution and implement reforms in the energy sector to improve the quality of service to consumers.

the Project to improve the efficiency of electricity distribution (EDEIP) will help distribution companies improve operations in order to manage the electricity supply more efficiently and increase the reliability of the electricity network. It focuses on cost-saving interventions to increase revenue collection and reduce losses, as well as modernizing operations through the use of 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 sustainability of the electricity sector depends on improving the efficiency of the electricity distribution companies that deliver electricity to consumers.” said Najy Benhassine, World Bank Country Director for Pakistan. “These efforts will improve the operational and financial performance of select distributors to improve their banking capabilities and ultimately lead to more private sector involvement.”

The EDEIP will support institutional reforms to improve governance and transparency, and develop systems and practices to improve management performance and regulatory compliance. In addition, the project will help build the technical capacity of sales companies by providing training programs, tools and equipment to improve employee performance in key utility companies.

“The project will focus on strengthening the operations and governance of the Hyderabad Electric Supply Company, Multan Electric Power Company and Peshawar Electric Supply Company.” said Mohammad Saqib Task Team Leader for the project. “Under the leadership of the Department of Energy, this project will support reform of the market sector, reduce transmission and distribution losses and improve the sector’s financial performance.”. “

EDEIP complements the ongoing World Bank support to the energy sector, including transmission grid, renewable energy generation, and reforms through Pakistan’s Affordable and Clean Energy Program (PACE), which focuses on improving its financial sustainability and moving to very low energy . Carbon energy. The project will increase the reliability of electricity services for consumers from the private, agricultural, commercial and industrial sectors in the project areas and help reduce CO2 emissions.

The World Bank in Pakistan

Pakistan has been a member of the World Bank since 1950. Since then, the World Bank has provided $ 40 billion in aid. The World Bank’s program in Pakistan is governed by the country partnership strategy for the 2015-2020 financial year with four priority areas of engagement: energy, private sector development, integration and service delivery. The current portfolio includes 58 projects and a total exposure of $ 13.8 billion.


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