The World Bank has raised concerns regarding the progress of the Electricity Distribution Efficiency Improvement Project (EDEIP), which is valued at approximately $195 million. The project intended to enhance operational efficiency for selected distribution companies but has come behind schedule because of challenges faced related to the capacity of implementing agencies, land acquisition, and procurement.
Although the readmission was on December 17, 2021, and registered as executed on August 15, 2022, $11.43 million, or 5.86 percent of the total funds, had been disbursed up to this time. The closing date for the project is December 31, 2027.
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To put the project back on track, the government has committed to a Project Implementation Enhancement Plan (PIEP), which would monitor realistic targets, key activities, and required resources, and hold, discuss, and review every month with the World Bank.
EDEIP is to improve operating efficiencies and modernize operations of all three DISCOs- Hyderabad Electric Supply Company (HESCO), Multan Electric Power Company (MEPCO,) and Peshawar Electric Supply Company (PESCO). The project is moving towards improvement in grid reliability, modernization of operations and management, and building capabilities and technical assistance. Such improvements to the consumers are availing increased stability, reliability, and capacity of the grid, while also employing modern information systems and equipment to improve service delivery.