World Bank approves additional $1bn for Dasu Hydropower Project

LAHROE: In what can be termed a significant development for much-needed financing to generate clean, green and economically affordable hydel electricity in Pakistan, the World Bank has approved additional financing to the tune of US$1 billion for Dasu Hydropower Project, being constructed by Wapda on River Indus, said a statement issued by the Water and Power Development Authority (WAPDA) on Tuesday.

This is the single largest financial facility provided by the World Bank for a project in Pakistan. This facility comprises of concessional financing through the World Bank arms of IDA and IBRD, it added.

This additional financing by the World Bank reflects the trust the Bank reposes in Wapda’s financial strength and professional expertise for successful implementation of mega projects in water and hydropower sectors.

It is important to note that the World Bank is already providing financial support of US$588 million and a partial credit guarantee of US$460 million for construction of Dasu Hydropower Project.

At present, Wapda is constructing eight mega projects worth US$26 billion to add 9.7 Million-Acre Feet (MAF) to the water storage and double its hydel generation capacity from 9,500 to 20,000 MegaWatt (MW) during the next five years. Wapda has devised an innovative financial strategy for construction of these projects with less reliance on the national exchequer by exploiting its own financial strength. Dasu is one of these under-construction projects.

The 4320MW-Dasu Hydropower Project is being constructed on River Indus, upstream of Dasu Town in Upper Kohistan District of Khyber Pakhtunkhwa Province. The Project is planned to be completed in two stages – each stage having a generation capacity of 2160MW. At present, Wapda is constructing Stage-I of the Project.

Subsequent to the successful diversion of River Indus last year, construction work is continuing simultaneously on key sites of the Project. Stage-I of Dasu Hydropower Project will start electricity generation in 2026. It will contribute 12 billion units per annum to the National Grid. The Stage-II will also provide another 9 billion units to the system every year.

Copyright Business Recorder, 2024