Over $4bn foreign-funded energy projects face delays
Main reasons are challenges in contracts, equipment procurement, land acquisition
Several energy projects funded by international financial institutions are experiencing delays due to challenges in contracts, equipment procurement, and land acquisition.
According to a report from the Economic Affairs Division, the projects are mainly funded by the World Bank and the Asian Development Bank (ADB).
Fifteen energy projects, with a combined cost exceeding $4.31 billion, are currently underway with assistance from these institutions. However, progress on some projects remains limited, ranging from just 8% to 35%.
The World Bank is supporting seven projects worth $2.48 billion, having disbursed $930 million so far. These projects include the CASA 1000 electricity transmission project, which faces delays due to conditions in Afghanistan, as well as key initiatives like Tarbela-V, Dasu Phase-1, the National Transmission Modernization Project, and the upgrading of substations.
Similarly, the ADB is financing projects with a total value of $1.83 billion, of which $904 million has been released. Among these are the Jamshoro Power Generation project and the Secondary Power Transmission Expansion project.
Despite slow progress, officials claim that work is moving at a moderately satisfactory pace after initial delays. They cite the substantial efforts being made to address the issues causing bottlenecks.