World Bank mulls $700m loan for Dasu Hydropower Project
The World Bank is considering the government of Pakistan's request for a $700 million loan to finance the expansion of electricity supply from Dasu Hydropower Project. The loan is expected to be approved by the bank’s executive board next month.
The proposed loan from the International Development Association will be utilised as additional financing for first phase of Dasu project, and will cover cost of construction of a 255km long, 765kV high-voltage alternating current transmission line from the DHP-I to the Islamabad West and Mansehra substations, that would not only have capacity to carry power generation from Dasu project but also for future expansions of lines to other parts of the country.
The World Bank considers the project as “high-risk, high-reward” operation aimed at providing low-cost non-carbon renewable energy.
The DHP is run-of-river project located on the Indus River about 240km upstream from Tarbela dam. The total 4,320MW project is being developed in a staged design. The first phase of the HDP-I, currently under implementation, has an installed capacity of 2,160MW and will generate over 12,000GHz of renewable low-cost energy for supply to the central grid.
The Stage-II of the project will add another 2,160MW and 6,000GWh of electricity per year and would be undertaken in future as the first phase of the project nears completion.
