World Bank has issued a mixed review of the National Transmission Modernization-1 Project (NTMP-I) in Pakistan, a $400 million initiative aimed at bolstering the country’s electricity grid.
Approved in December 2017, the project seeks to improve the capacity and reliability of select segments of the national transmission system while modernizing key business practices at the National Transmission and Dispatch Company (NTDC). With a closing date of January 31, 2024, the project is nearing completion.
The project encompasses three main components: expanding and upgrading the transmission network ($344.56 million), deploying an enterprise resource planning (ERP) system ($29.46 million), and providing project management, technical assistance, and capacity building ($20 million).
According to official documents, the project became operational in December 2018. Procurement for design, supply, and installation of infrastructure components is ongoing. While 16 out of 17 procurement packages have been finalized, with 13 awarded by NTDC, some challenges remain.
Three completed procurement packages for converting existing Air Insulated Substations (AIS) to Gas Insulated Substations (GIS) were cancelled due to high bidding costs. Additionally, the largest and final package, the Islamabad West 765kV grid substation, is currently under technical evaluation.
Progress on transformer installation has also been mixed, with only 11 transformers installed out of the planned 43 within the NTDC network.
The ERP system implementation has seen better progress, with 10 out of 11 contracts signed. The remaining contract is currently under bidding due to a previous low bid response.
The World Bank acknowledges progress on the project, rating it “moderately satisfactory” in terms of achieving its development objectives and overall implementation. However, the overall risk rating remains “substantial,” highlighting areas for improvement.
This mixed review underscores the need for continued focus on addressing procurement challenges and expediting the completion of critical project components to ensure a more robust and reliable national transmission system for Pakistan.