
The development objective of the Natural Gas Efficiency Project (NGEP) for Pakistan is to enhance the supply of natural gas in Pakistan by reducing the physical and commercial losses of gas in the pipeline system. This level two restructuring will cancel 60 million dollars out of the 100 million dollars of International Bank for Reconstruction and Development (IBRD) loan. Under this restructuring the objectives of component one, unaccounted-for gas (UFG) reduction funding will be reduced to United States (U.S.) 36.45 million dollars (additional funding will be provided through Sui Southern Gas Company Limited (SSCG's) own resources); component two, appliance efficiency pilot project will be dropped; and funding for component three, technical assistance and training will be reduced to U.S. 3.3 million dollars (additional funding will be provided through SSCG's own resources). NGEP will be restructured to provide new SSGC and NGEP management options to revisit key components and associated tasks with the understanding that key analytical work is needed to better understand the drivers of UFG, and that some elements currently assigned to NGEP may be better addressed as part of SSGC’s day-to-day operations.