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3 NTDC projects: World Bank, ADB and IsDB willing to finance

ISLAMABAD: According to sources in the Economic Affairs Division (EAD), the World Bank (WB), Asian Development Bank (ADB), and Islamic Development Bank (IsDB) have reportedly expressed their willingness to finance three projects of the National Transmission and Despatch Company (NTDC). They have also suggested seeking private participation for the Ghazi Brotha to Faisalabad West Transmission Line, sources told Business Recorder.

These commitments were conveyed during a meeting chaired by Secretary Economic Affairs Division, Dr. Kazim Niaz, which was attended by senior officials from development partners and the Power Division/NTDC.

Secretary EAD highlighted that in an earlier meeting with the Minister for Economic Affairs, Ahad Khan Cheema, the possibility of securing financing for NTDC projects was discussed. Transmission line projects were given priority for funding by international development partners and equity financing through the Special Investment Facilitation Council (SIFC).

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During the discussion on NTDC’s projects, Simon Stolp, Practice Manager Energy at the World Bank (WB), expressed their willingness to consider co-financing for the Matiari-Moro-Rahim Yar Khan Transmission Line alongside ADB and IsDB. He added that WB had internally prioritized the Reactive Compensation Power Devices Project, though this did not exclude the possibility of financing transmission line projects.

Stolp also emphasized that WB’s long-term priorities were focused on strengthening NTDC’s capacity to acquire assets and increasing private sector participation in the national transmission network.

The Secretary of the Power Division, Dr. Fakhre Alam Irfan, informed that NTDC had submitted a Transmission System Expansion Plan (TSEP) to Nepra for approval. He highlighted that a total outlay of $8.4 billion was required, which included $3.4 billion for ongoing projects and $5.0 billion for new power sector projects.

Secretary EAD added that the pipeline allocation of international development partners had been exhausted for the current year, and this meeting would help prioritize power sector projects, as requested by the Power Division/NTDC, for allocation in future pipeline projects.

Ehtasham Khattak, Energy Sector Specialist at ADB, stressed that project readiness was the most crucial factor for ADB’s financing decisions. He also stated that ADB preferred the Engineering Procurement and Construction (EPC) approach for NTDC projects, as it had been more effective in ensuring successful project execution, whereas the non-EPC approach had caused delays, especially in cases where NTDC or the government financed the civil works component.

Khattak further noted that ADB would focus on projects where procurement was ongoing or in advanced stages, as this demonstrated the government’s commitment to timely project completion.

Ossama Trigui, representing IsDB, shared that three projects under discussion were already being reviewed by the Bank for potential financing. He confirmed that IsDB was ready to provide co-financing for the projects, contingent on ADB and WB’s willingness to finance. Additionally, he mentioned that IsDB would prioritize projects that already had commitments from other development partners.

Muhammad Waseem Younas (DMD SO) of NTDC stated that the installation of Reactive Compensation Devices was essential to upgrade the Matiari-Moro-Rahim Yar Khan transmission line. He further mentioned that M/s NESPAK had been engaged to conduct techno-financial feasibility studies for this transmission line project, which would be completed by the end of the current month.

Related Questions and There Answers:

Following detailed discussions, the following decisions were made:

(i) WB and ADB each made an initial commitment of $500 million for the three projects, while IsDB committed $200-320 million;

(ii) For the Moro-Matiari-Rahim Yar Khan transmission line project, WB and IsDB will co-finance with ADB as the lead financier;

(iii) For the Reactive Compensation Devices Project, WB will serve as the lead financier, with ADB and IsDB providing co-financing;

(iv) For the Ghazi Brotha to Faisalabad West Transmission Line, EAD, Power Division, and NTDC will hold internal discussions on leveraging private sector participation through PPP mode, alongside seeking support from traditional international development partners to meet the total financing needs of the project.

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Sophia Bennett is an art historian and freelance writer with a passion for exploring the intersections between nature, symbolism, and artistic expression. With a background in Renaissance and modern art, Sophia enjoys uncovering the hidden meanings behind iconic works and sharing her insights with art lovers of all levels. When she’s not visiting museums or researching the latest trends in contemporary art, you can find her hiking in the countryside, always chasing the next rainbow.

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