EDEIP and more financing: World Bank sends mission for mid-term review

ISLAMABAD: The World Bank has dispatched a mission to Pakistan to carry out a mid-term review mission of the Electricity Distribution Efficiency Improvement Project (EDEIP) and its additional financing, sources told Business Recorder.

The mission will conduct a comprehensive review of the project implementation to assess: (i) the project’s relevance lo Pakistan energy policy priorities and strategy; (ii) its progress towards the achievement of the PDOs; (iii) efficacy and effectiveness of the design-and institutional arrangement; and (iv) overall implementation progress and measures to expedite the project.

The World Bank team is comprised of Ky Hong Tran (Task Team Leader), Waqas Idrees (Senior Energy specialist), Rehan Hyder (senior procurement specialist), Ahmad Imran Aslam (senior Environmental Specialist), Imran ulHaq (Senior Social Development Specialist), Mohammad Omar Khalid (Consultant), Quratul Ain Hadi (senior Financial Management Specialist), Syed Shan Ali Raza (consultant) and supported by Amna W Mir (Senior program Associate).

World Bank urges Pakistan to expedite $55mn power efficiency project

In June 2025, the World Bank had urged Pakistan’s Power Division and three major Distribution Companies (Discos) to fast-track implementation of the Additional Financing (AF) for the Electricity Distribution Efficiency Improvement Project (EDEIP), warning that continued delays could hamper the timely and effective use of the USD55 million credit facility.

World Bank noted a significant uptick in disbursements and commitments as of June 30, 2025—with disbursements rising to $18.09 million (9.3%) from 3.6% in November 2024, and commitments to USD18.28 million (20.7%) from 9.0%. Still, the Bank flagged that targets for the quarter were not fully met due to rebidding of key contracts, procurement strategy revisions, and delays in grievance resolution.

Despite these hurdles, the Bank remains optimistic, arguing that “the project is now on track to meet its development goals by closure, projecting end-FY26 disbursement and commitment levels at 30% and 95%, respectively.”

The three Discos—Hyderabad Electric Supply Company (HESCO), Multan Electric Power Company (MEPCO), and Peshawar Electric Supply Company (PESCO)—have been told to promptly roll out activities under the new funding. During the Bank’s May 2025 Appraisal Mission, all stakeholders agreed on a roadmap to eliminate project bottlenecks and enhance implementation speed.

The World Bank stressed the importance of updating the Project Enhancement Action Plan (PEAP) by July 21, 2025, to reflect on-the-ground realities and lessons learned. And stated that the Project Procurement Strategy for Development (PPSD) must be revised in line with the Bank’s 2025 Procurement Regulations to address persistent contract delays.

Key improvements must also be made in procurement quality, bid evaluation speed, complaint management, and oversight of contract execution. All high-value contracts must incorporate rated criteria and early market engagement to ensure transparency and efficiency.

Revised procurement plans and bid documents are due to the Bank by July 31, 2025. On the Environmental and Social (E&S) front, the Bank flagged slow progress in preparing key documents like Environmental and Social Impact Assessments (ESIAs) and Resettlement Action Plans (RAPs). These are to be submitted by the end of July. The Bank warned that continued inaction could stall broader project progress.

While the capacity of Project Implementation Units (PIUs) has improved—with support from the Project Implementation and Management Support Consultant (PIMSC) — gaps remain. The Bank highlighted the need for greater stability in project teams, urging against frequent changes in PIMSC personnel.

Copyright Business Recorder, 2025