ISLAMABAD: The government is set to install Advanced Metering Infrastructure (AMI) in five power Distribution Companies (Discos) to modernise the electricity distribution system, as the estimated financial impact of Transmission and Distribution (T&D) losses currently stands at around USD 1 billion per annum, sources close to the Managing Director of the Private Power and Infrastructure Board (PPIB) told Business Recorder . To facilitate this key project, the federal government has approached the World Bank (WB) to act as Transaction Advisor. The Managing Director of PPIB has acknowledged that Pakistan’s power sector is facing serious operational and financial challenges, primarily due to high technical and commercial losses, weak recoveries, outdated metering systems, and limited visibility over electricity consumption patterns. READ MORE: Panel informed: All conventional meters to be replaced with AMI meters by next year T&D losses currently stand at approximately 18 per cent of total power supply, translating into an estimated annual financial loss of Rs 265 billion. These structural inefficiencies undermine sector sustainability, burden consumers, and restrict fiscal space for critical investments. With the objective of modernising the distribution system, reducing losses, improving recoveries, enhancing system efficiency and reliability, and restoring consumer trust, PPIB has been tasked with hiring a private AMI Services Provider (AMISP) for the installation and operation of the AMI system in five Discos—Lahore Electric Supply Company (LESCO), Multan Electric Power Company (MEPCO), Peshawar Electric Supply Company (PESCO), Hazara Electric Supply Company (HAZECO), and Quetta Electric Supply Company (QESCO). The project will be implemented under the Public Private Partnership (PPP) mode in consultation with key stakeholders, including the Power Planning and Monitoring Company (PPMC), Power Information Technology Company (PITC), and the relevant Discos. “As this activity is being carried out for the first time under the PPP mode, it has been decided to engage a suitable Transaction Advisor (TA) to provide end-to-end advisory services for the successful execution of AMI transactions,” said Shah Jahan Mirza in a letter to the World Bank’s Islamabad office. He added that the TA would be responsible for undertaking technical, commercial, and legal due diligence; developing the business case; PPP structuring; assisting in the execution and management of the procurement process, including preparation of bidding documents; and providing support through project award, agreement execution, and financial close. In this regard, PPIB’s proposal for engaging an International Financial Institution (IFI) as Transaction Advisor for the AMI project was approved by the P3A Board in its 41st meeting held on December 16, 2025, under the provision of “Direct Contracting of IFIs as Transaction Advisers” of the Public Private Partnership Authority (P3A) Regulations, 2023. The overall engagement term of the IFI/ TA is envisaged to be a maximum of 12 months. The proposed fee structure is expected to be success-fee driven, comprising a 5-10 per cent milestone-based payment and a 9-9.5 per cent success-based component (subject to negotiations), to be paid by successful bidders at the time of financial close. The scope of work and technical evaluation criteria, including the Terms of Reference, has also been shared. The scope of work will include, but will not be limited to, the following phases: (i) diagnostics and data validation, business case development, and rollout planning; (ii) transaction structuring (technical, legal, commercial, and financial) and market sounding; (iii) procurement support and bid process management; and (iv) contract finalisation and financial close. Given the World Bank’s extensive experience in facilitating similar initiatives, PPIB has requested the Bank to submit a proposal for providing transaction advisory services for the AMI rollout project in the selected five Discos. “We believe the World Bank’s involvement will be instrumental in the success of this landmark initiative and look forward to receiving its proposal and to working together to achieve the government’s top-priority agenda of power sector modernisation and elimination of system inefficiencies,” sources quoted the Managing Director of PPIB as saying. The World Bank has been requested to submit its proposal to PPIB no later than January 14, 2026. Copyright Business Recorder, 2026