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World Bank approves $1bn additional financing for Dasu Hydropower project

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Staff Reporter

2 years ago

WASHINGTON: In a major development just before the presentation of the next fiscal year’s budget, the World Bank on Monday approved $1 billion in a second round of additional financing for the Dasu Hydropower Project (DHP) Phase I.

The clearance came while the World Bank Board of Executive Directors met in Washington, with one of the Bretton Woods Institutions stating that the “financing will support the expansion of hydropower electricity supply, improve access to socioeconomic services for local communities.”

Furthermore, it will contribute to the Water and Power Development Authority’s (Wapda) capacity to plan future hydroelectric projects.

“Pakistan’s energy sector faces numerous challenges in achieving affordable, reliable, and sustainable energy,” said Najy Benhassine, World Bank Country Director in Pakistan.

He referred to the project site as one of the best in the world and a game changer for Pakistan’s energy industry. Benhassine noted that the hydropower project, which has “a very small footprint,” will help to ‘green’ the energy industry and reduce electricity costs.

The World Bank’s points concerning green energy and sustainable energy are critical, considering that Pakistan is one of the most vulnerable countries to global warming or climate change.

A run-of-the-river project on the Indus River about 8 kilometers from Dasu, the seat of the Upper Kohistan district in Khyber Pakhtunkhwa, will have an installed capacity of 4,320-5,400 MW after the two phases are completed.

Similarly, Rikard Liden, who is the task team leader for the project, it is essential to reverse dependence on fossil fuels and reach 60 percent renewable energy by 2031.“The second additional financing will facilitate the expansion of electricity supply and potentially save Pakistan an estimated $1.8bn annually by replacing imported fuels, and offset around 5 million tonnes of carbon dioxide. The annual economic return of DHP-I is estimated to be around 28pc.”

Staff Reporter