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Over $4bn foreign-funded energy projects face delays

Main reasons are challenges in contracts, equipment procurement, land acquisition

1 year ago

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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.

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