Islamabad, 24 December 2021 (TDI): A financing agreement of the Electricity Distribution Efficiency Improvement Project was signed between the Economic Affairs Division of the Government of Pakistan and the World Bank.
The US$ 195 million worth agreement was signed in Islamabad, today. Earlier Pakistan also signed financing agreements with ADB. Secretary of Economic Affairs Division, Mian Asad Hayaud Din signed the loan agreement on behalf of Pakistan’s Government.
Representatives of HESCO, MEPCO, and PESCO signed the project agreements. Whilst Anjum Ahmad, the Operations Manager of World Bank signed the agreements on behalf of his organization.
The objectives of the project are to enhance operational efficiency in targeted areas. The targeted areas are of three Electricity Distribution Companies; Peshawar Electric Supply Company (PESCO), Multan Electric Power Company (MEPCO), and Hyderabad Electric Supply Company (HESCO), to accomplish progress on the power sector reform plan.
The “Electricity Distribution Efficiency Improvement Project” strives to sustain investment programs of three DISCOs’ to decrease technical failures and enhance the reliability of electricity supply.
This will be done through new grid stations, augmentation and up-gradation of existing grid stations along with construction, rehabilitation of transmission lines, modernization of DISCOs operations as well as management functions.
Furthermore, it will improve revenue and equipment protection programs as well as improve operations and maintenance. In addition, the project will also support the Power Division in realizing its policy mandate as per the National Electricity Policy 2021 and ensure power sector reforms.
The interventions specifically aim at improving the technical capabilities, governance, safety, and commercial performance of the DISCOs to sufficiently serve their customers.
Moreover, the project will also help the Ministry of Energy (Power Division) to implement power sector reforms, support enhancing private participation in the management of the DISCOs, and strengthen its oversight function.
Moreover, it will also contribute to the focus area on growth by enhancing the supply of electricity to industry, businesses, and agriculture consumers. It will also significantly contribute towards reaching the objectives for the priority area; Green and Clean Pakistan.
Secretary Mian Asad Hayaud Din expressed gratitude and appreciated the World Bank management for its continuous support to the present Government for the promotion of sustainable and inclusive economic development.
The Secretary EAD also expressed that, Government of Pakistan kept its focus on implementing structural reforms even at times of prevailing difficult circumstances so that the economy recovers its strength.
He reiterated the commitment of the Government to further strengthen the enactment of reforms, including thorough power sector reforms focusing firmly on lessening reliance on imported fossil fuel, decreasing current and future power costs, addressing inefficiencies in distribution, boosting renewable energy, and lowering subsidies in the sector by adequately targeting them to those most in need.
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