World Bank rates progress on KP hydropower, renewable energy project 'moderately unsatisfactory'

ISLAMABAD: The World Bank on Wednesday dubbed the progress on the Khyber Pakhtunkhwa Hydropower and Renewable Energy Development project “moderately unsatisfactory”, with “substantial risk” to its $727 million loan meant for strengthening provincial institutions and increasing renewable energy generation. In its public disclosure , the Washington-based lending agency rated the progress towards the achievement of project development objectives as “moderately unsatisfactory”. Various segments of the loan were approved in 2020 with a targeted completion date of Nov 30, 2027. However, the World Bank rated the overall implementation progress as “moderately satisfactory” and described the overall risk rating as “substantial”.

The rating was based on “moderate” risk in the political and governance and technical design categories, but “substantial” risks emanated from macroeconomic, institutional capacity, fiduciary issues and environmental and social parameters. According to a World Bank document , each dimension is rated on a four-point scale — high, substantial, moderate, or low— depending on the likelihood that the risk will materialise and the expected severity of its impact if it does materialise. A screengrab from the World Bank report. The bank said it processed restructuring of the project to align its scope and financing with implementation priorities at the request of the government. The report stated: “Overall, implementation has gained momentum, with key milestones achieved under the Gabral-Kalam Hydropower Project , including commencement of civil works, progress on land acquisition and advancement of the electro-mechanical works procurement. “The project will continue to focus on timely implementation, effective contract management, and compliance with…