World Bank approves $ 195 million loan for Pakistan
The World Bank Board of Directors approved a $ 195 million loan to Pakistan to improve electricity distribution and implement energy sector reforms to improve quality of service for consumers.
âThe Electricity Distribution Efficiency Improvement Project (EDEIP) will help distribution companies improve their operations in order to more efficiently manage the electricity supply and increase the reliability of the electricity grid. operations using technology and information systems. The project will also invest in climate resilient infrastructure, in particular grid stations and transmission lines, which are essential for distribution and utilities, âthe World Bank said in a statement on Saturday.
âThe long-term financial viability of the electricity sector depends on improving the efficiency of the electricity distribution companies that provide electricity to consumers,â said Najy Benhassine, country director of the Bank. world for Pakistan. “These efforts will improve the operational and financial performance of some distribution companies in order to improve their bankability and, ultimately, generate greater participation from the private sector.”
The statement said that EDEIP will support institutional reforms aimed at improving governance and transparency and will develop systems and practices to improve management performance and compliance with regulatory requirements. In addition, the project will help build the technical capacities of distribution companies by providing training programs, tools and equipment to improve staff performance in key utility operations.
âThe project will focus on strengthening the operations and governance of Hyderabad Electric Supply Company, Multan Electric Power Company and Peshawar Electric Supply Company,â said Mohammad Saqib, project team leader for the project. âUnder the leadership of the Ministry of Energy, this project will strengthen market sector reforms, reduce transmission and distribution losses, and improve the financial performance of the sector. “
EDEIP complements the continued support of the World Bank’s electricity sector, including on the transmission grid, renewable energy generation, as well as reforms through the Pakistan Program for Affordable and Clean Energy (PACE ), which focuses on improving its financial viability and the transition to carbon energy. The project will increase the reliability of electricity services for residential, agricultural, commercial and industrial consumers in the project areas and help reduce carbon emissions, the statement said.