ISLAMABAD, July 24, 2025: The World Bank has requested formal amendments to existing project agreements following the restructuring of the National Transmission and Despatch Company (NTDC) into three new successor entities. The Bank’s Operations Manager for Pakistan, Gailius J. Draugelis, communicated this request in a letter to the Secretary of the Economic Affairs Division (EAD).
Under the restructuring, NTDC has been divided into:
- Independent System Market Operator
- National Grid Company of Pakistan
- Energy Infrastructure and Development Management Company
Since legal agreements for the ongoing National Transmission Modernization I Project are still in NTDC’s name, the World Bank has asked the government to formally notify the changes and update all project documentation accordingly.
During a project review mission held from June 16 to 26, 2025, the Bank rated overall implementation progress and achievement of the Project Development Objective (PDO) as “Moderately Satisfactory.” As of June 30, disbursements had reached \$183 million, though improvements are needed in FY26.
Most components are on track for completion by December 2025, except the Islamabad West Substation (IWS) contract, which now carries a revised completion target of November 2026. The project’s overall closing date has thus been extended to December 31, 2026—an extension the Bank said is final.
The mission emphasized the need for better coordination between NTDC, contractors, consultants, and the Project Management Unit (PMU), noting that such engagement has previously been limited to Bank missions. The PMU has committed to monthly review meetings starting July 15, and will maintain full staffing through project closure.
Regarding contract management, the Bank noted some contractors had been operating without valid agreements. Although NTDC has resolved many of these issues, some contracts are again nearing expiry. Similar concerns affect five contracts under the ERP (Enterprise Resource Planning) component, which aims to modernize NTDC operations. Several ERP modules are scheduled to go live within two months, with full implementation expected by December 2025. The Bank urged NTDC to improve internal communication to ensure smooth adoption.
On the 500kV Nowshera transmission line, the Bank flagged a long-standing delay due to right-of-way issues at tower location No. 23. Though NTDC has obtained verbal consent from the landowner, the Bank advised formalizing this in writing to prevent future disruptions.
Regarding compensation linked to the IWS contract, NTDC had pledged to clear all outstanding payments by May 31, 2025. Some remain pending due to minor sums that recipients are reluctant to collect. The Bank recommended alternatives such as mailing cheques or depositing funds with local authorities. NTDC has now committed to complete all payments by August 15, 2025.
The Bank also acknowledged recent progress at the Loralai and Sibi substations in Balochistan. Construction at both sites resumed on June 23 after security concerns were addressed with support from local authorities.
The World Bank commended the Government of Pakistan and NTDC for their continued efforts in advancing the project and resolving logistical, legal, and security challenges.
Story by Mushtaq Ghumman
