The implementation of the Sindh The solar energy project funded by the World Bank still needs to be completed, despite the correspondingly slow rate of disbursement under the project. Official documents revealed that the World Bank had disbursed $21.83 million, i.e., 23 percent of the total $100 million, and the overall implementation progress still needs improvement.
The World Bank’s Board approved the project of Executive Directors on June 14, 2018, and it became effective on January 9, 2019. The first disbursement was made into the designated account in September 2019. Still, due to significant implementation delays (including the COVID-19 pandemic and related restrictions), the project must catch up to its implementation schedule with tangible results under just one of the four components.
Therefore, the project closing date has been extended to July 31, 2025, allowing additional time to implement and achieve the targeted project results. There has yet to be much on-the-ground progress to report under Component 1. Still, three Requests for Proposals (RFPs) will be initiated soon for three separate sites through competitive bidding. Currently, these RFPs are with the National Electric Power Regulatory Authority (NEPRA) for approval.
There has been further progress made by SED under Component 2, with the commissioning of 29 sites (16.39 MW) for installing solar power on the rooftops of public hospitals. Four completed areas remain to be commissioned, along with a water pumping station at Jacobabad.
A second round of structures, meaning up to 10 MW of solar capability on and around other public buildings in Sindh, is underway out of savings generated in the procurement of about 22 MW already completed or approaching fulfillment. Additional rounds of procurement are currently in the planning stage.
Discussions have also been held to establish contractual arrangements for operations & maintenance. Under Component 3, sales and installations of solar home systems (SHS) have stalled since initial sales were made in late 2021 and 2022, with 322 SHS sold.
The progress of this component could have been improved by the severe floods that occurred during the summer of 2022, as well as the import restrictions that the federal government imposed. As a result, it has been decided to redesign this component and adopt a “bulk procurement” approach. The initial procurement process for the new system is currently underway. There is still more work that needs to be done for the implementation of Component 4.
The training of 300 solar technicians has been completed. However, the project’s implementation progress could have been faster, resulting in a corresponding delay in disbursement. To accelerate the implementation, SED has agreed to take some actions.
SED has approved a revised PC-1, which aims to reallocate funds among the components, formalize the design change for Component 3, and introduce measures to facilitate smoother implementation. These details were revealed in the documents.