19-06-2025
- Business
- Business Recorder
World Bank may give extra $50m financing to Discos
ISLAMABAD: The World Bank is likely to extend an additional $50 million in financing to power distribution companies (Discos) under the Electricity Distribution Efficiency Improvement Project – Additional Financing (EDEIP-AF). According to the World Bank, technical discussions will be held today (Thursday) at the World Bank's Islamabad office. The proposed 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).
Both HESCO and PESCO, currently among the poorest-performing Discos, have not been slated for privatisation so far. Sources indicate that the technical discussions were originally scheduled for June 17, 2025. However, they were postponed after the Central Development Working Party (CDWP) delayed its approval. A senior Planning Commission official had raised questions about the PC-I and suggested revisions to the submitted documents.
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.
The Pakistani delegation 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.
The outcomes of the negotiations have been documented in mutually agreed minutes, which were signed by the heads of both delegations. These signatures represent the Government of Pakistan's approval of the legal documents. As agreed with Pakistan's Governor on the World Bank's IDA Board of Governors, the head of the Pakistan delegation's signature will also be considered as the Governor's endorsement of the statutory committee's recommendation.
Copyright Business Recorder, 2025
