ISLAMABAD: The World Bank has raised questions on the implementation of Electricity Distribution Efficiency Improvement Project (EDEIP) of around $195 million, saying the project is behind the original scheduled due to various reasons including capacity of implementing agencies, land acquisition and procurement challenges.
The bank has rated the progress towards achievement of project development objective and overall implementation progress of the EDEIP as moderately satisfactory. Against the $195 million, $11.43 million i.e. 5.86 percent are disbursed so far.
The project was approved on December 17, 2021, and the loan agreement and the project agreements were signed on December 23, 2021. The project was declared effective on August 15, 2022, while the closing date is 31 December 2027.
World Bank uncovers key bottlenecks in ‘EDEIP’
The project development objectives are to improve operational efficiency in targeted areas of selected distribution companies and achieve progress on the power sector reform agenda.
Official documents revealed the government has committed to implement a Project Implementation Enhancement Plan (PIEP) to bring the project back on track.
The PIEP will track/monitor realistic targets/milestones, key activities, and required resources and the PIEP will be reviewed by the implementing agencies and discussed with WB on a monthly basis.
The project will help improve operational efficiencies and modernise operations and management of the three DISCOs, namely, Hyderabad Electric Supply Company (HESCO), Multan Electric Power Company (MEPCO) and Peshawar Electric Supply Company (PESCO).
This will be achieved through the following components:
(1) Improving Grid Reliability;
(2) Modernizing Operations and Management; and
(3) Capacity Building and Technical Assistance.
The project will benefit the consumers of these DISCOs by improving the stability, reliability and capacity of the grid as well as by deploying modern information systems and equipment to improve service delivery.
Copyright Business Recorder, 2024
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