Islamabad (Web Desk): The World Bank (WB) has approved $1 billion additional financing for Pakistan to support Dasu Hydropower Stage I (DHP I) Project and the transition to clean and affordable energy.
A decision to this effect was take in the WB's Board of Executive Directors in Washington.
According to a statement issued by the WB, this financing will support the expansion of hydropower electricity supply, improve access to socio-economic services for local communities, and build the Water and Power Development Authority's (WAPDA) capacity to prepare future hydropower projects.
The Dasu Hydropower Project site is one of the best hydropower sites in the world and is a game changer for the Pakistan energy sector.
With a very small footprint, the project will contribute to greening the energy sector and lowering the cost of electricity.
The additional financing will further support ongoing socio-economic initiatives in Upper Kohistan, particularly in the areas of education, health, employment and transport.
It is pertinent to mention that the World Bank is already providing financial support of $ 588 million and a partial credit guarantee of $ 460 million for construction of Dasu Hydropower Project.
At present, WAPDA was constructing eight mega projects worth $ 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 had 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 4320 MW-Dasu Hydropower Project is being constructed on River Indus, upstream of Dasu Town in Upper Kohistan District of Khyber Pakhtunkhwa (KP).
The Project is planned to be completed in two stages – each stage having a generation capacity of 2160 MW.
At present, WAPDA is constructing Stage-I of the project. Subsequent to the successful diversion of River Indus last year, construction work was 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.