World Bank rates Pakistan energy project’s progress toward objectives moderately unsatisfactory — Dawn
The World Bank has rated progress toward achieving the objectives of a hydropower and renewable energy development project in Pakistan’s Khyber Pakhtunkhwa province as moderately unsatisfactory. The bank assessed the overall risk to the $727 million loan as substantial, Dawn reports.
Implementation assessment
At the same time, the World Bank rated overall progress in project implementation as moderately satisfactory. The bank cited moderate risks in the areas of politics and governance, as well as technical design. It described macroeconomic risks, institutional capacity issues, fiduciary matters, and environmental and social factors as substantial.
At the government’s request, the World Bank restructured the project to align its scope and financing with implementation priorities. According to the bank, project implementation has gained momentum: construction work has begun on the Gabral-Kalam hydropower plant, while land acquisition and procurement of electromechanical equipment are progressing.
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Financing and facilities
The financing package was approved on September 24, 2020, and the project is scheduled for completion by November 30, 2027. It provided $594 million for hydropower and renewable energy development, $59 million for environmental and social management, $55 million for institutional strengthening and implementation support, as well as about $15 million in financing costs.
Of the $200 million market loan, which became effective in September 2020, $3.95 million has been disbursed — less than 2% of the amount. Under the $240 million concessional loan, $34 million has been disbursed, or about 14% of its total amount.
The project includes the 88 MW run-of-river Gabral-Kalam hydropower plant, which is expected to generate 339 GWh of electricity annually. It also provides for cascade development of river basins, financing for the 157 MW Madyan hydropower plant and other facilities on the Swat River, as well as the installation of floating or ground-mounted solar photovoltaic systems at hydropower facilities.
