World Bank set to review ‘BEST Pakistan Programme Phase I’ next month

ISLAMABAD: The World Bank’s Board of Executive Directors is set to review the “BEST Pakistan (BEST-PAK) Programme Phase I: Grid Stability Enhancement Project”, valued at USD 378.9 million, next month.

The project aims at strengthening the transmission system’s stability and enhancing operational performance.

Official documents revealed that the proposed investment project financing (IPF) operation for Phase I will support the installation of reactive power management devices and provide Technical Assistance for the NTDC’s institutional reforms, financed by an IBRD loan of USD 378.9 million, along with the AIIB and IsDB co-financing of USD 92.5 million and USD 92.7 million, respectively.

Co-financing from both AIIB and IsDB will exclusively support Component 1. The AIIB financing will be provided on a joint co-financing basis, and IsDB financing will follow a parallel co-financing arrangement whereby it finances different procurement packages within Phase I.

The proposed BEST-PAK is a vertical Multiphase Programmatic Approach (MPA) designed to accelerate implementation of priority investments under the Transmission System Expansion Plan (TSEP) 2024–34, including through public-private partnerships (PPPs), while advancing the NTDC restructuring.

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It is a 10-year programme (fiscal year 2026–35) with a framework organized around two complementary program areas: (i) a four-phase infrastructure track that sequences near-term grid stabilization investments (reactive power compensation), followed by system flexibility upgrades through battery energy storage systems, a major 500 kV transmission corridor (Matiari–Moro–Rahim Yar Khan, positioned for potential private participation and fibre optic monetization), and targeted reinforcement of existing transmission assets in the centre and north to improve reliability and resilience; and (ii) a reform and capacity building track that combines phase specific implementation support technical assistance (TA) with a Phase I reform TA, drawing on international experience in transmission unbundling and institutional design to support Ministry of Energy- Power Division (MoE-PD), National Grade Company, Independent System and Market Operator (ISMO) and Energy Infrastructure Development Management Company (EIDMC) in preparing and implementing a time-bound restructuring plan, alongside governance, accountability, and change management strengthening.

Copyright Business Recorder, 2026