The Pakistani government has requested extensions for the completion of the National Transmission Modernization I project, valued at $425 million and financed by the World Bank. Delays in finalizing key procurement and land compensation activities have prompted the need for an extension. This would mark the second restructuring of the project, with the initial one occurring in October 2023.
Official documents from the World Bank indicate that the government has sought a 35-month extension through a letter, aiming to accommodate the completion of ongoing contracts and the Implementation Works Services (IWS) with a 30-month implementation completion time. The World Bank has agreed to process the requested extension in two phases, with an initial extension of 15 months.
The proposed restructuring involves extending the closing date of the International Bank for Reconstruction and Development (IBRD) loan by fifteen months to April 30, 2025, allowing for the completion of ongoing contracts. A second extension for the remaining implementation period will be considered based on the progress of the IWS package and completion of land compensation payments.
The National Transmission Modernization I Project (NTMP-I), approved by the World Bank in December 2017, supports the expansion and upgrade of Pakistan’s transmission network, deployment of an Enterprise Resource Planning System for the National Transmission & Despatch Company, and provides technical assistance for strengthening NTDC’s planning, operations, maintenance capability, and modernizing key business processes.
Also Read: IMF warns that Artificial Intelligence Will Affect 40% of Office Jobs
Out of the approved $425 million loan, only $79 million has been disbursed so far. The restructuring seeks approval to extend the closing date of the project by 15 months, from January 31, 2024, to April 30, 2025. The Project Development Objective is rated ‘Moderately Satisfactory,’ while Implementation Progress is rated ‘Moderately Unsatisfactory’ due to delays in procurement and land compensation activities. The overall implementation progress has improved in recent months, with the Islamabad West Substation package set to be awarded soon.
Component A focuses on the expansion and upgrade of the transmission network, with progress on the Islamabad West Substation package and land compensation payments. Component B involves the deployment of an ERP system, showing satisfactory progress. Component C focuses on project management, technical assistance, and capacity building, with positive developments in the comprehensive system study and capacity building plan.
