By Ayesha Saba

The KfW-financed 220kV Gharo grid station project is steadily moving towards its September 2027 completion, with physical progress reaching 31.03%.

According to an official document available with Wealth Pakistan, the project has utilized €5.54 million out of €27 million in financing, equivalent to 20.5% of the available loan financing, while €21.46 million remains unutilized.

The project’s start date was September 11, 2025, and completion is scheduled for September 10, 2027. The loan was signed on July 27, 2020, and became effective on May 28, 2021. The closing date of the financing facility is December 31, 2027.

The document attributes the delay to multiple factors, including COVID-19, the absence of the bank's standard bidding documents for the approved Single Stage Two Envelope procurement process, which led to prolonged deliberations, and subsequent delay by the consultant in preparing the bidding documents.

The 500kV Chakwal grid station, backed by a €43.76 million KfW loan, is also making progress.

The NGC board has approved the financial bid evaluation report for hiring the project implementation consultant through the KfW's tender agent and authorised the process to proceed towards pre-award negotiations with the successful bidder.

As part of the procurement process, the tender agent, the relevant NGC team, and the successful bidder held a pre-award meeting on July 22, 2026.

Preparatory works at Chakwal have also advanced. A total of 89 acres required for construction of the grid station have been acquired, and the boundary wall has been completed.

For the associated transmission line, the detailed survey and soil investigation have been completed, while the plan and profile and sub-soil investigation report have been approved.

Overall progress on the project stands at 5%. The financing was signed on December 19, 2022, and became effective on March 14, 2024, with the loan scheduled to close on December 30, 2027. The document shows €3.35 million has so far been utilised from the €43.76 million financing.

The latest progress on the Gharo and Chakwal schemes shows movement across both construction and preparatory stages, as NGC advances new high-voltage grid infrastructure with support from German development.

Credit: INP-WealthPk