June 11th 2024.
Good news for Pakistan! The World Bank has just approved an additional loan of $1 billion to support the development of the Dasu hydropower project in Khyber Pakhtunkhwa province. As reported by the Express Tribune newspaper, this is the third major financing from the global lender for the project. Previously, it had provided $588.4 million for preparatory works and an additional $700 million for the construction of a transmission line to transport electricity from the project.
The Dasu hydropower project, located about 300km north of Islamabad in the volatile Khyber Pakhtunkhwa province, is being built by China Gezhouba with funding from the World Bank. Unfortunately, the project has faced numerous challenges, including two terrorist attacks targeting Chinese workers involved in its construction.
In a press release on Monday, the World Bank announced its approval of $1 billion in additional financing for the DASU Hydropower Stage I Project. The funds will be used to expand the electricity supply, improve access to socio-economic services for local communities, and strengthen the Water and Power Development Authority's capacity to prepare future hydropower projects.
Najy Benhassine, World Bank Country Director for Pakistan, highlighted the country's struggles in achieving affordable, reliable, and sustainable energy. He also emphasized the significance of the Dasu hydropower project, which has the potential to "green" the energy sector and decrease the cost of electricity.
Upon completion, the hydropower plant will have a capacity of 4,320–5,400 MW, making it one of the best hydropower sites in the world. Rikard Liden, Task Team Leader for the project, stated that it is an essential step towards Pakistan's goal of reaching 60% renewable energy by 2031. He also mentioned the potential savings of $1.8 billion annually through the replacement of imported fuels and the reduction of carbon dioxide emissions by 5 million tons.
In March and July of this year, the project site was targeted by terrorist attacks, resulting in the loss of lives of Chinese engineers and Pakistani workers. In response, Pakistan provided $11.6 million in compensation to the affected Chinese nationals. The contractor for the Dasu Hydropower Project is China Gezhouba Group Company.
Pakistan is in dire need of cheaper electricity resources to lessen its reliance on expensive imported fuel-based power generation. The high electricity costs have forced many households, factories, mosques, and hospitals to turn to solar power, putting pressure on those still connected to the national grid. With the support of the World Bank and the development of the Dasu hydropower project, Pakistan is taking a significant step towards achieving its energy goals.
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