2 days ago
- Business
- Business Recorder
Wolrd Bank approves $55m in additional financing to Discos
ISLAMABAD: The World Bank has approved additional $55 million to Distribution Companies (Discos) under the Electricity Distribution Efficiency Improvement Project, sources told Business Recorder.
'The delegate authority of the Board of Executive Directors of the World Bank has approved, on June 27,2025, the International Development Association (IDA) additional financing in the amount of $55 million to the Islamic Republic of Pakistan for the Electricity Distribution Efficiency Improvement Project,' the sources quoted WB as saying in a letter to Economic Affairs Division.
Technical discussions were held on June 18, 2205 at the World Bank's Islamabad office. The additional financing aims to further enhance the operational and financial performance of the Hyderabad Electric Supply Company (HESCO) and Peshawar Electric Supply Company (PESCO) through the scaled deployment of Asset Performance Management Systems (APMS).
World Bank may give extra $50m financing to Discos
Both HESCO and PESCO, currently among the poorest-performing Discos, have not been slated for privatisation so far.
The additional financing is fully aligned with the project's development objectives, which include improving operational efficiency in targeted areas of selected distribution companies, supporting progress on the power sector reform agenda, and advancing the Country Partnership Framework (CPF) between the Government of Pakistan and the World Bank.
During negotiations, discussions covered the draft Financing Agreement between the Government of Pakistan (the Recipient) and the World Bank (the Association), the draft Project Agreements with HESCO and PESCO (the Project Implementing Entities), the draft Project Paper (PP), the Disbursement and Financial Information Letter (DFIL), and the Environmental and Social Commitment Plan (ESCP).
In line with the World Bank's Access to Information Policy, once a project is approved by the Country Director for financing, the Association publicly discloses the PP, legal agreements, and other relevant documentation. The Association may also release the PP upon its distribution to the Board, subject to the Recipient's consent.
Discos will share data contained in the PP that may be confidential or sensitive and could potentially impact the relationship between the World Bank and the Government of Pakistan. Suggested revisions to the PP's wording were discussed to resolve any issues related to its release.
Copyright Business Recorder, 2025
