ISLAMABAD, (DNA) –  The World Bank (WB) on Monday approved a $825 million loan for Pakistan to bolster its electricity transmission and distribution network, alongside improving education and health service delivery by reinforcing financing management systems.

The Washington-based lender allocated $425 million for National Transmission Modernization Project-I (NTMP-I), which will assist in revamping and modernizing the distribution and transmission systems.

This will involve the rehabilitation of certain 500kV and 220kV substations and transmission lines. In a statement, WB Country Director Pakistan Illango Patchamuthu said, “With a substantial volume of new generation now coming online, the strengthening of the transmission and distribution systems is critical. “The improved power supply will help meet the unserved demand from consumers and reduce the number and duration of power outages”.

NTMP-I project is going to amplify and improve reliability of power supply and decrease losses in transmission network. It will also upgrade and modernize information and communication technology infrastructure, besides securing accounting systems of National Transmission and Dispatch Company (NTDC).

The other $400 million tranche has been approved for Public Financial Management (PFM) reform program, supported by WB. It will help to decentralize of payment and empower front-line service delivery managers. PFM reform project is outlined on improving cash management, timely and comprehensive reporting, enhancing federal-provincial coordinate, timely release of funds etc, the WB press release read.

Illango commenting on PFM reform program said, “The public financial management challenges undermine the delivery of health and education services to the population”, said Illango. “The new program will support the government to strengthen their public financial management and make it more transparent and accountable by introducing new aspects like, social audit of public expenditures by beneficiaries.”

NTMP program is being funded by International Bank for Reconstruction and Development (IBRD) and PFM reform program is being financed by International Development Association (IDA).