The World Bank has rated the implementation of ‘National Transmission Modernization Project’ of $425 million as moderately satisfactory, observing that an extension of the project will be necessary to facilitate the completion of the Islamabad West Substation (IWS) contract–critical for the evacuation of the Bank financed Dasu hydropower plant.
The Bank has so far disbursed $160.37 million i.e. 37.73 percent while $264.63 remain undisbursed. The original closing date of the project was 31 January 2024, which is revised to 30 April 2025.
Official documents revealed that the project, which was approved by the World Bank Board of Executive Directors in December 2017, is approaching the end of its seventh year of implementation. Currently, the project closes on April 30, 2025.
However, one of the key project activities, the Islamabad West Substation (IWS) contract, is scheduled for completion in the first quarter of 2027. Hence, an extension of the project will be necessary to facilitate the completion of the IWS contract, which is critical for the evacuation of the Bank financed Dasu hydropower plant.
The remaining project activities are scheduled for completion between April and July 2025. Shutdowns for network upgrades and reinforcement activities will be issued during the winter months between November 2024 and February 2025.
The development objective of the first National Transmission Modernization Project for Pakistan was to increase the capacity and reliability of selected segments of the national transmission system and modernize key business processes of the National Transmission and Dispatch Company.
The project consists of three components. The first component, expansion and upgradation of the transmission network component consists of (a) expanding, augmenting, and upgrading selected existing 500 kV and 220 kV power substations and associated lines; and (b) constructing new 765 kV, 500 kV, and 220 kV substations and transmission lines.
The component has two groups of sub-projects. Group 1 sub-projects are those that the National Transmission and Dispatch Company (NTDC) has designated as having the highest priority; feasibility studies and required safeguards documentation have been completed for them. Group 2 sub-projects are potential subprojects that the NTDC’s Power Sector Development Plan (PSDP) for 2016–2021 has identified.
Second component, the deployment of the Enterprise Resource Planning (ERP) system will finance the first stage of an ERP program for the NTDC. The component includes the modernization of the ICT infrastructure and the development and deployment of an ERP system aimed at strengthening the company’s management capabilities using an integrated ICT system.
The component includes the procurement of civil infrastructure such as data centers, provision of local area network outlets, software licenses, hardware for office automation, consulting services for implementation support and change management, and ICT capacity building and strategic sourcing to ensure the sustainability of the ERP system.
The third component, project management, technical assistance, and capacity building will finance:
- project management and implementation support services;
- strengthening of NTDC’s planning, operations, and maintenance capability to accommodate new thermal and renewable energy generation;
- modernization of NTDC’s key business processes;
- preparation of new investments; and
- other priority TA and capacity building to be agreed between the NTDC and the World Bank.
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