Key points

  • According to Business Recorder, the World Bank has flagged implementation delays in the USD 425 million National Transmission Modernisation-I Project.
  • Business Recorder reported that only 60.12 percent of the loan has been disbursed, leaving significant funds remaining unused.
  • The implementing agency faces a looming December 31, 2026 closing date to accelerate execution and utilise the remaining financing.

Implementation progress on Pakistan's multi-million-dollar power sector upgrade has hit significant roadblocks, with the World Bank raising concerns over sluggish execution timelines, according to Business Recorder. The USD 425 million National Transmission Modernisation-I Project currently sees a substantial portion of its approved financing locked in undisbursed balances as critical infrastructure contracts lag behind schedule.

Key Details

Business Recorder reported that the World Bank's project documents rate overall implementation progress as “Moderately Satisfactory,” a status shared by the initiative's progress toward its core development objectives. Out of the original USD 425 million financing approved in December 2017, the lender has disbursed USD 255.53 million, leaving USD 124.31 million undisbursed. Documents cited by the publication identified the Islamabad West Substation contract as the primary driver behind the delayed fund utilisation and missed physical implementation targets. The project is managed by the National Transmission and Despatch Company, now designated as the National Grid Company.

Context and Impact

Approved in December 2017, the initiative aims to enhance the capacity and reliability of selected segments within Pakistan's national transmission network while modernising key business processes of the implementing company. However, repeated setbacks have left the project substantially behind its original physical milestones, heightening the urgency for administrative acceleration.

Summary and What Next

With the project scheduled to close on December 31, 2026, the implementing agency faces a limited window to expedite execution and fully absorb the remaining financial allocations. Further updates will depend on remedial measures taken to address the bottleneck at the Islamabad West Substation.