Electricity Distribution Efficiency Project Advances: World Bank Declares EDEIP Effective

The World Bank has evaluated the progress of the “Electricity Distribution Efficiency Improvement Project (EDEIP),” a $209 million initiative, as moderately satisfactory. This project, approved in December 2021 and declared effective in August 2022, aims to enhance the operational efficiency of select distribution companies (DISCOs) in Pakistan and promote power sector reforms. Three DISCOs, including Hyderabad Electric Supply Company (HESCO), Multan Electric Power Company (MEPCO), and Peshawar Electric Supply Company (PESCO), will benefit from this project. EDEIP’s key components focus on improving grid reliability, modernizing operations and management, and providing capacity building and technical assistance.

The project aims to benefit consumers by increasing the stability, reliability, and capacity of the electricity grid. It also intends to implement modern information systems and equipment to enhance service delivery. Each DISCO will engage Project Implementation and Management Support Consultants (PIMSCs) to facilitate this process.

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EDEIP will support power sector reforms through Component 4, overseen by the Ministry of Energy (MoE). This component will focus on governance and institutional reforms and the transition to a competitive electricity trading system known as the Competitive Trading Bilateral Contract Market (CTBCM).

Significant progress has been made, including advertising and procurement for several goods contracts, while larger contracts for grid station works are awaiting the hiring of PIMSCs by HESCO, MEPCO, and PESCO. The hiring of PIMSCs is expected to be completed during the fiscal year, indicating positive momentum in this important energy sector initiative.

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