Washington: The World Bank Executive Board of Executive Directors has approved a loan of USD 195 million for Pakistan to improve electricity distribution and implement energy sector reform to improve service quality for consumers.
“Project for Improvement of Electrical Distribution (EDEIP) will help distribution companies increase operations to manage electricity supply more efficiently and improve electricity grid reliability.
It focuses on cost-effective interventions to increase income collection and reduce losses, and in the modernization of operations by hiring The technology and information system.
The project will also invest in climate forces infrastructure, especially the Grid Station and Transmission Line, which is very important for the distribution and service utility, “the World Bank said in a statement on Saturday.
“The long-term financial feasibility of the electricity sector depends on the increase in the efficiency of the electrical distribution company that provides electricity to consumers,” said Najy Benhassine, Director of the World Bank State for Pakistan.
“These efforts will improve the operational and financial performance of certain distribution companies to improve their independence and ultimately produce more private sector participation.” The statement said EDEIP would support institutional reforms to improve governance and transparency and will develop systems and practices to improve managerial and compliance performance with regulatory requirements.
In addition, this project will help build the technical capacity of the distribution company by providing training programs, tools, and equipment to improve staff performance in main utility operations.
“This project will focus on strengthening the operation and governance of the Hyderabad electricity supply company, multan electricity company, and the Peshawar electricity supply company,” said the leader of the Mohammad Saqib Task Team for this project.
“With the leadership of the Ministry of Energy, this project will increase market sector reform, reduce transmission and distribution losses, and improve financial performance of this sector.” EDEIP completes the ongoing electrical sector support from the World Bank, including transmission networks, renewable energy generation, and reform through the Pakistan program for affordable and clean energy (speed), which focuses on increasing its financial viability and transition to low carbon energy.
This project will improve the reliability of electricity services for consumer housing, agriculture, commercial, and industry in the project field, and will contribute to reducing carbon emissions, reading statements.