Islamabad: The World Bank will provide a new $1 billion loan for the Dasu Hydropower Project. This loan will be granted after the approval of the revised PC-1, which is estimated to cost PKR 1.7 trillion.
According to senior officials from the Economic Affairs Division (EAD), the World Bank has formally agreed to finance the first phase of the Dasu Hydropower Project with this new loan. The loan disbursement is contingent on the approval of the revised PC-1, which includes updated timelines.
The cost of the project’s first phase has surged by 190.1%, rising from PKR 586 billion to PKR 1,700 billion. The key reasons for this increase include delays in land acquisition, security concerns, and a 178% rise in the US dollar’s exchange rate.
The first phase of the project will generate 2,160 megawatts of electricity, while the completion of the second phase will increase the total capacity to 4,320 megawatts.
WAPDA has finalized the revised PC-1 for the project, which is currently under review by the Minister for Water Resources and will soon be sent to the Planning Commission for approval.
Story by Khalid Mustafa
