Project Information Document - Electricity Distribution Efficiency Improvement Project - P170230 (English)

The review did authorize the team to appraise and negotiate B. Introduction and Context Country Context 1. The Government of Pakistan (GoP) has made good progress in completing its second year of foundational reforms, with support from the World Bank Group (WBG), to restore financial viability of the power sector and lock in the transition to a low carbon footprint (Program for Affordable and Clea [...] In 1997, the GoP unbundled the Power Wing of the Water and Power Development Authority (WAPDA) into four thermal generation companies (GENCOs), one National Transmission & Despatch Company (NTDC), and ten DISCOs, for subsequent privatization of the unbundled GENCOs and DISCOs. [...] Also, an important part of the RE Policy and the new National Electricity Policy approved in June 2021 is the introduction of competitive bidding for all new generation projects, which will disrupt the three-decades old practice of direct contracting and cost-plus tariffs that led to high power costs. [...] The target date for the commencement of the commercial operation of the wholesale market is April 2022. [...] It will also build the capacity of the sector institutions to implement power sector reforms and support enhancing private participation in the management of the DISCOs.