ISLAMABAD: The World Bank has maintained the implementation status of Pakistan’s National Transmission Modernization-I Project (NTMP-I) as “Moderately Satisfactory” but noted that USD218 million remains undisbursed with less than a year left before the project’s closing date of December 31, 2026.
According to the latest Implementation Status & Results Report (ISR), overall implementation progress is rated “Moderately Satisfactory,” while the overall risk rating remains “Substantial.”
The USD425 million IBRD loan, approved in December 2017, has so far recorded disbursements of USD207.69 million, reflecting 58.8 percent utilization.
The report stated that the large undisbursed balance is primarily due to slow progress on the Islamabad West Substation (IWS) contract. The Bank has asked the implementing agency and the Power Division to closely monitor physical progress and assess risks to completion within the current timeline.
The project aims to increase the capacity and reliability of selected segments of the national transmission system and modernize key business processes of the National Transmission and Dispatch Company (NTDC).
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Under the transmission component, 17 substations have been newly augmented or expanded against a revised scope of 24. Only 7.2 kilometres of transmission lines have been constructed or rehabilitated, compared to the original target of 131 kilometres, which was later reduced.
Additional substation capacity of 3.18 million KVA has been added to the system, including capacities from Islamabad West and Nowshera substations. However, several performance indicators relating to reduction in forced outages remain below targets.
On the institutional side, the Enterprise Resource Planning (ERP) system has yet to become operational. The report noted that finance department staff are not currently using the ERP system, which is now expected to be operational by April 2026.
The submission time for audited financial statements has improved from 14 months at baseline to five months, meeting the statutory requirement of six months after year-end.
The project has undergone three Level-2 restructurings since 2023. The Bank has emphasized the need to accelerate implementation to ensure completion of works within the revised closing date.
Copyright Business Recorder, 2026
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