World Bank has initiated a mid-term review of the Electricity Distribution Efficiency Improvement Project (EDEIP) in Pakistan to evaluate its progress, strategic alignment, and financing utilization. This mission marks a critical checkpoint in the $55 million project, which aims to enhance electricity distribution efficiency and strengthen the country’s power sector infrastructure.
The World Bank review will focus on assessing how effectively the project is supporting Pakistan’s broader energy policy priorities, its progress toward achieving development objectives, the effectiveness of its institutional design, and the quality of its implementation measures. The mission’s findings are expected to guide adjustments to improve project delivery and accelerate outcomes.
The review team comprises senior specialists and consultants, including Ky Hong Tran (Task Team Leader), Waqas Idrees (Senior Energy Specialist), Rehan Hyder (Senior Procurement Specialist), Ahmad Imran Aslam (Senior Environmental Specialist), Imran ul Haq (Senior Social Development Specialist), Mohammad Omar Khalid (Consultant), Quratul Ain Hadi (Senior Financial Management Specialist), Syed Shan Ali Raza (Consultant), and Amna W Mir (Senior Program Associate).
Earlier this year, the World Bank had urged the Power Division and three key distribution companies — Hyderabad Electric Supply Company, Multan Electric Power Company, and Peshawar Electric Supply Company — to fast-track implementation of the additional $55 million in financing to ensure timely completion of project components. The bank cautioned that persistent delays could impact the effectiveness of fund utilization and slow the delivery of targeted efficiency gains.
Financial data shows some improvement in disbursement and commitment rates over the past year. As of June 30, 2025, disbursements stood at $18.09 million (9.3%), up from 3.6% in November 2024, while commitments climbed to $18.28 million (20.7%) from 9.0%. However, these figures still lag behind quarterly targets due to multiple operational hurdles, including contract rebidding, changes to procurement strategies, and delays in grievance redressal mechanisms.
Despite these setbacks, the World Bank remains optimistic about achieving the project’s overall objectives. Projections indicate that by the end of FY26, disbursements will reach around 30% and commitments will rise to 95%, aligning the project with its development milestones. The bank has advised the Discos to expedite the rollout of critical project activities to ensure steady momentum.
A key part of the review includes updating the Project Enhancement Action Plan (PEAP) by July 21, 2025. This update will incorporate lessons learned during the first phase of implementation and outline measures to streamline processes, minimize procurement delays, and improve accountability mechanisms across all stakeholders involved.
The EDEIP is expected to play an important role in improving distribution system efficiency, reducing technical and commercial losses, and strengthening the reliability of Pakistan’s power supply. With the mid-term review underway, the World Bank and its partners aim to ensure that the remaining phases of the project are executed more effectively, contributing to Pakistan’s broader energy transition and infrastructure modernization goals.
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