WASHINGTON: On Saturday, the World Bank’s Board of Executive Directors authorised $195 million in funding to assist Pakistan in strengthening power distribution and implementing energy sector reforms to improve customer service quality.
The Electricity Distribution Efficiency Improvement Project (EDEIP), according to a statement issued by the international financial institution, will assist distribution companies in improving operations in order to manage the electricity supply more efficiently and increase the reliability of the electrical grid.
“It focuses on cost-cutting initiatives to boost revenue collection and decrease losses, as well as on modernising operations via the use of technology and information systems,” the report stated.
In addition, the initiative will invest in climate-resilient infrastructure, namely grid stations and transmission lines, which are important to distribution and utility services.
“The long-term financial viability of the power industry hinges on increasing the efficiency of energy distribution businesses that distribute electricity to consumers,” stated World Bank Country Director for Pakistan Najy Benhassine.”
“These initiatives will enhance the operational and financial performance of select distribution businesses, allowing them to become more bankable and, as a result, attract more private sector participation.” “He stated.
According to the strategy, the EDEIP would promote institutional reforms to increase governance and transparency, as well as build systems and practises to improve management performance and regulatory compliance.
“In addition, the initiative will assist distribution businesses increase technical capacity by providing training programmes, tools, and equipment to improve staff performance in core utility operations,” the statement said.
“The project will focus on enhancing operations and governance of Hyderabad Electric Supply Company, Multan Electric Power Company, and Peshawar Electric Supply Company,” stated project team leader Mohammad Saqib Task.
“With the Ministry of Energy’s guidance, this project will strengthen market-sector reforms, minimise transmission and distribution losses, and enhance the sector’s financial performance,” the project head stated.
The EDEIP supplements ongoing World Bank power sector support, such as transmission network and renewable energy generation, as well as reforms through the Pakistan Programme for Affordable and Clean Energy (PACE), which focuses on improving financial viability and transitioning to low-carbon energy.
According to the World Bank, the project would improve the reliability of power services for residential, agricultural, commercial, and industrial clients in project regions while also helping to reduce carbon emissions.