The World Bank has approved the International Development Association’s (IDA) financing package to help expand hydro-electricity generation in Pakistan by developing the Dasu Hydropower Stage-I Project (DHP-I).
IDA is the World Bank Group’s grant and low-interest arm.
The package includes an IDA Credit of $588.4m as well as an IDA Partial Credit Guarantee (PCG) of $460m intended to help mobilize commercial financing for the project.
World Bank Pakistan country director Rachid Benmessaoud said the Dasu Hydropower project will help the people of Pakistan to reduce their carbon footprint and make electric power generation more sustainable
"The program is an important part of the transformational energy initiative of Pakistan, in which the support from across the World Bank Group is focused on helping Pakistan’s energy sector out of its crisis and onto a more sustainable path that supports economic growth," Benmessaoud added.
On the main Indus River, the DHP-I is expected to have 2,160MW hydropower plant and could be expanded to 4,320MW in future with low additional cost.
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By GlobalDataIn addition to facilitating growth and development in Pakistan, the project will help develop capacity of the Water and Power Development Authority (WAPDA) to harness the vast hydropower resources of the country in a sustainable manner.
World Bank task team leader and lead water resource specialist Masood Ahmad said that the Dasu Hydropower Project will start the Indus Cascade development that is crucial for reducing the overall cost of electricity generation based on domestic resources.
"The Project would provide benefits to most sectors of the economy in Pakistan, and the population as a whole would benefit directly or indirectly," Ahmad added.
Estimated to cost about $4.2bn, the DHP-I is a run-of-river project which will be located on the Indus River about 240km upstream from the Tarbela dam, close to Dasu town, in Kohistan district.
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