Dasu power project: WAPDA, leading banks explore financing options

A meeting of the presidents and senior office holders of eight leading banks of the country with the WAPDA authorities was held here at the WAPDA House Friday with WAPDA Chairman Zafar Mahmood in the chair. The representatives of the Ministry of Finance, State Bank, National Bank, Habib Bank, United Bank, Allied Bank, MCB Bank, Dubai Islamic Bank, Meezan Bank and Standard Chartered Bank attended the meeting on the invitation of WAPDA.
The purpose of holding the meeting was to explore ways and means for arrangement of local finances for construction of Dasu Hydropower Project (Stage-1). Though the World Bank is providing partial financing for the project in addition to using its guarantee to generate resources from the commercial market, WAPDA, on its part, is endeavouring to generate $1.28 billion from the local market.
Speaking on the occasion, WAPDA Chairman said that since its establishment as an independent authority in 1958, WAPDA has relied on the international financing institutions and multilateral donors for construction of its mega hydel projects in the country. He said that it is for the first time that innovative mode of financing is being explored for construction of Dasu project by involving the local financial market. He said that it is encouraging that the commercial banks are showing keen interest in partnering with WAPDA to finance Dasu Hydropower Project.
The Chairman said that WAPDA as an entity should be evaluated on the basis of its huge asset base, better loan repayment history and lucrative investment opportunities based on the Dasu project feasibility report as its strong credentials. The representatives of the leading banks appreciated WAPDA for its initiative to involve local banks as development partners. They said that they would consider various options to finance Dasu Hydropower Project. It is pertinent to mention here that WAPDA already organized a road show in Karachi some time back to apprise the banks and financial institutions of vast investment opportunities existing in Dasu project.