POWER SECT. DEV. PRO

closed

The Power Sector Development Project will consist of a restructuring and privatization component involving the implementation of a Strategic Plan which will include 1) the reorganization and corporatization of the Water and Power Development Authority (WAPDA) into a holding company with decentralized power generation, transmission and distribution subsidiaries operating as discrete autonomous profit centers; 2) the establishment of a National Electric Power Regulatory Authority to set standards and regulate a largely privately operated power sector; 3) the adoption of a pricing policy which will provide the incentives needed to support the project's privatization objectives; 4) the development of a labor transition program that will allow the privatization of the power sector to occur in a manner that provides adequate management flexibility to the private sector while addressing the concerns of labor; and 5) the initial offering for sale to the private sector of parts of WAPDA's assets. The project will also entail an investment component involving the implementation of a four-year time-slice of WAPDA's investment program, while improving the reliability of the system; and a technical assistance component involving consulting services and training for strengthening WAPDA's environmental capability.