‘Adverse impacts’ of Dasu project: World Bank warns of retaliation by locals

ISLAMABAD: The World Bank has warned the Pakistani government against retaliation against people affected by the Dasu Hydropower Project who lodged a complaint with its independent inspection panel over potential adverse social impacts of the Stage-I transmission line project.

In a letter addressed to Secretary Economic Affairs Muhammad Humair Karim, World Bank Country Director for Pakistan Bolormaa Amgaabazar emphasised the importance of protecting complainants, victims and witnesses from threats, intimidation and reprisals.

The complainants believe they have been, or are likely to be, adversely affected by the project, which has received additional World Bank financing for construction of its Stage-I transmission line.

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The World Bank said the complainants had also alleged retaliation in connection with their complaint. However, it clarified that it generally lacked the means to independently verify the accuracy of such allegations and had no indication that retaliatory actions had been carried out by identifiable officials or individuals.

The Bank stressed that it did not tolerate reprisals or retaliation against people who expressed their views about World Bank-financed projects, referring to its publicly available Commitments Against Reprisals.

It asked the Pakistani government to remind all partners involved in implementing the project, particularly the relevant implementing authorities, of the importance of protecting individuals who raise concerns about projects financed by the institution.

The complaint has been submitted to the Inspection Panel, an independent accountability mechanism for people who believe they have been, or are likely to be, adversely affected by a World Bank-financed project.

The Bank clarified that the complaint was not currently under investigation. The Inspection Panel is assessing its admissibility and, if the complaint is found admissible, will assess whether the concerns raised warrant a full investigation and make a recommendation to the World Bank’s Board of Executive Directors.

The final authority to authorise an investigation rests with the Board. The letter stated that the Panel had not yet made any assessment or recommendation on whether a full investigation was warranted.

The Inspection Panel operates independently of the Bank’s management and reports directly to the Board of Executive Directors. Its mandate is to examine whether the Bank has complied with its own policies and procedures in projects it finances.

The World Bank also informed the government that relevant documents concerning the request for inspection had been shared with the Office of the Executive Director representing Pakistan at the institution.

The complaint concerns additional financing for the Dasu Hydropower Stage-I Project, specifically the construction of a transmission line. It raises concerns about potential social consequences for affected communities.

The 4,320-megawatt Dasu run-of-river hydropower project is being constructed on the Indus River in Upper Kohistan, Khyber Pakhtunkhwa.

Copies of the letter were also sent to Chainman WAPDA and other senior officials of different concerned Ministries.

The Inspection Panel’s ongoing assessment will determine whether the complaint meets the requirements for further examination and whether the concerns raised merit a formal investigation into the World Bank’s compliance with its applicable policies and procedures. No decision has yet been taken to launch a full investigation.

Copyright Business Recorder, 2026