ISLAMABAD: The World Bank on Wednesday described progress on the Khyber Pakhtunkhwa Hydropower and Renewable Energy Development project as “moderately unsatisfactory”, with “substantial risk” to its $727 million loan intended to strengthen provincial institutions and increase renewable energy generation.
In its public disclosure, the Washington-based lending agency rated progress toward the project’s development objectives as “moderately unsatisfactory”. The loan was 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 of the risk materialising and the expected severity of its impact if it does.
The bank said it restructured the project to align its scope and financing with the government’s implementation priorities. 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 applicable environmental and social requirements.”
Published in Dawn, October 29th, 2026
