Call for Strengthening PASBET Pilot Demonstration Units (Pakistan)

The focus areas, objectives, priorities, and themes of this assignment include validating and enhancing existing assessments and analytical outputs on biomass resources, supply chains, policy and regulatory frameworks, financing mechanisms, gender needs, environmental and social impact assessments, GIS-based environmental baselines, and energy demand studies; strengthening policy recommendations for State Bank of Pakistan refinancing schemes and green finance instruments; designing financial incentives including concessional loans, guarantees, subsidies, and risk-sharing mechanisms; developing implementation roadmaps for commercial banking engagement; creating innovative biomass energy business and financial models; building capacity of financial institutions including SBP and commercial banks; operationalizing and managing five pilot biomass demonstration units across Sindh, Punjab, Balochistan, and Khyber Pakhtunkhwa; ensuring biomass feedstock supply chain management; establishing institutional coordination mechanisms with government and provincial departments; and developing monitoring, reporting, performance optimization, and sustainability frameworks for long-term replication.

The assignment is structured around strengthening the enabling environment for biomass energy in Pakistan by consolidating evidence-based assessments and translating them into actionable policy, financial, and operational frameworks. It places strong emphasis on validating prior studies through structured stakeholder consultations, ensuring that insights from government entities, financial institutions, private sector actors, academia, and local communities are integrated into refined analytical outputs. These consultations are intended to identify gaps, align expectations, and build consensus on biomass energy development pathways.

A key component of the work involves developing targeted policy recommendations for refinancing schemes under the State Bank of Pakistan. This includes addressing financial barriers such as high capital costs, long payback periods, and perceived risks, while proposing blended finance structures and risk mitigation instruments. The assignment also emphasizes benchmarking global best practices to design scalable financial solutions tailored to biomass energy technologies.

The scope further extends to developing robust business and financial models that capture the full biomass value chain, from feedstock sourcing to energy generation and end-use applications. These models will support feasibility assessments and investment decision-making by incorporating cost structures, revenue streams, risk analysis, and sensitivity testing. Standardized financial tools will be developed to support replication and scaling of viable biomass projects.

Capacity building forms another critical dimension, focusing on strengthening institutional capabilities within SBP and financial institutions to assess, finance, and manage biomass energy investments. Training modules will be refined and operationalized to ensure effective knowledge transfer on technical, financial, and regulatory aspects of biomass energy systems.

The assignment also includes the establishment of a structured pipeline of bankable biomass projects across five pilot locations. This involves updating energy demand assessments, mapping biomass resource availability, designing integrated energy solutions including hybrid systems, and conducting feasibility analyses supported by spatial mapping and implementation roadmaps. These efforts aim to ensure that projects are technically viable, financially sound, and socially inclusive.

Operationalization of the five pilot demonstration units forms a core responsibility, covering daily plant management, biomass handling, equipment operation, maintenance, and safety compliance. The service provider will also manage biomass supply chains, ensuring continuous feedstock availability through coordination with local communities, vendors, and provincial forest departments.

Human resource management, stakeholder coordination, monitoring systems, and performance optimization are integral to ensuring efficient plant operations. The assignment also emphasizes community engagement, demonstration activities, and capacity development at the local level to promote ownership and sustainability of biomass energy solutions.

Finally, the initiative focuses on long-term sustainability through structured reporting, knowledge management, troubleshooting, and handover planning, ensuring that pilot units serve as replicable models for broader adoption of biomass energy solutions across Pakistan.

For more information, visit UNDP.