World Bank may scrap US$200m locust control project

ISLAMABAD: The World Bank on Wednesday conveyed to Islamabad that its $200 million project of Locust Emergency and Food Security, which remained non-starter, might be canceled.

The WB’s Country Director conveyed its options to the Pakistani authorities here on Wednesday. It offered to restructure the project if the ownership of Ministry of National Food Security & Research was strengthened, besides the capacity building of project team was boosted and also sought clarity on the vision of Ministry and provinces role, mobilization of external partners, especially FAO. In case this is not possible, the WB would cancel the project forthwith.

According to official announcement made by the Economic Affairs Division (EAD) Omar Ayub Khan, Federal Minister for Economic Affairs, chaired a high-level meeting to review the progress on different projects funded by the World Bank. It was attended by the World Bank Team, led by Najy Benhassine, Country Director, and senior officers of EAD. Benhassine told the minister that currently, 54 projects are being implemented under WB’s financing of US$12.4 billion across the country. Out of 54 projects, 23 projects worth US$7.8 billion are being implemented by the federal government against which US$3.4 billion has been disbursed so far.

During the meeting, projects related to energy sector were given special focus, including National Transmission Modernization Project, Tarbela Fourth Extension Hydropower Project and Dasu Hydropower (Stage 1) Project. The minister for economic affairs directed to expedite the implementation of Islamabad West Substation, which is an important link to evacuate power from Dasu Hydropower Project. It was noted that the new security arrangements have been put in place and the overall implementation progress of Dasu Hydropower Project has improved as 11 major contracts amounting to US$ 3 billion were awarded including electro-mechanical works.

The World Bank team informed Omar Ayub that the National Immunization Support Project was heading toward its successful completion in June 2022. Second round of third-party Vaccination Immunization Coverage Survey will be conducted in April 2022, based on which funds can be disbursed for DLI related payments. Other projects including Pakistan Housing Finance (Additional Financing), Resilient Institutions to Sustainable Economy (RSE-II), National Health Support Program, and Program for Affordable & Clean Energy (PACE-II) were also discussed in the meeting.