The Bank has reported that the four Project Implementing Entities have taken significant steps towards completing the actions agreed during the last ISM of November 2022.

The World Bank (WB) has requested that three power distribution companies (Discos), HESCO, MEPCO, and PESCO, begin the bidding process for the installation of smart meters and a transformer monitoring system (TMS) by July 1, 2023.

In a letter to all interested parties, the Bank’s Operation Manager (Pakistan), Gailius J. Draugelis, urged them to continue supporting the Electricity Distribution & Efficiency Improvement Project (EDEIP), which has recently been examined by its Implementation Support Mission (ISM). He was grateful for the support of the Ministry of Economic Affairs in fulfilling the conditions for implementation and startup.

The Bank has reported that the four Project Implementing Entities (PIEs) have taken significant steps towards completing the actions agreed during the last ISM of November 2022.

These include: all Project Management Units (PMUs) are functional, procurement committees are active, Grievance Redressal Committees (GRCs) have been notified and the first training of GRC members was conducted at the World Bank office on March 21, 2023.

Client connection accounts have been set up for authorized signatories and liaison officers of each PIE, and Designated Accounts (DAs) have been opened and approved by the Accountant General Pakistan Revenue (AGPR).

The MoE has been asked by the World Bank to closely monitor the account opening procedure, and PIEs should be prepared to submit their first withdrawal application for an advance as soon as their DAs are opened; (v) On March 13, senior management from the Discos, including the CEOs, finance directors, company secretaries, the chief engineer (development), and the internal auditor, attended a session on corporate governance.

One of the metrics used to gauge a project’s success is regulatory compliance; additionally, MEPCO and PESCO have partnered with WePower and had their lists of activities (LoAs) to increase gender diversity approved.

The World Bank has asked for assistance from various stakeholders in the following key activities in order to capitalise on this momentum: I PIEs should incorporate E&S risk screening assessments into the bid and contract documents and complete the procurement process for the award of eight goods contracts, which are in progress and have a total estimated cost of S20 million, within the timelines specified.

The three Discos are ready to award one contract, bids have been invited for four, and the remaining three are expected to be advertised in April.

HESCO, MEPCO and PESCO should initiate the bidding process for the deployment of Smart Meters and Transformer Monitoring System (TMS) by July 1, 2023. PESCO also includes the installation of Aerial Bundled Cables (ABC), and the E&S risk screening is in progress. The hiring of the Project Implementation and Management Support Consultants (PIMSCs) is at various stages and needs to be expedited.

PIES needs support from PIMSCs to prepare design studies, MEPCO should complete the evaluation and award PIMSCS contract by June 1, 2023, HESCO and PESCO should issue the RFP to short-listed firms by April 30, 2023, and MoE should proceed to finalize ToRs and bid documents for component four activities.

The first procurement plan for an estimated cost of $6.5 million to support sector reforms has been published and this includes procurement of software licences, dongles and other IT equipment to be completed by June 30, 2023 and some consultancies for which Expression of Interest (EOIs) can be invited by June 15, 2023; and (v) PIES should also ensure timely submission of reporting requirements.

The World Bank recommends that Discos submit Annual Work Plan & Budget for FY24 by April 30 and quarterly progress reports by April 30, 2023.

Action matrices should be shared with each Disco and shared with the Bank and MoE on bi-weekly basis. The next ISM is expected mid-May and will include a visit to proposed sites for grid stations and other investments financed through EDEIP.

The World Bank has appreciated the MoE, Power Division and participating electricity Distribution Companies for providing assistance and support to the ISM for EDEIP.

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