Dasu Hydropower Project receives $1 billion from World Bank

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As part of its decision to fund the Dasu Hydropower Stage I (DHP I) Project, the World Bank has approved a second round of additional financing to Pakistan of $1 billion. In a statement released by the World Bank, the World Bank said that this is for the purposes of funding the project.

It has been approved by the World Bank’s Board of Executive Directors to provide Pakistan with infrastructure and funding to make the transition towards a clean and affordable energy source.

A statement of the Water and Power Development Authority (WAPDA) stated on its website back in February that: “The objective of this financing is to support the expansion of hydropower power supply, improve socio-economic services in local communities, and strengthen WAPDA’s capability to prepare future hydropower projects.”

A year before Pakistan is scheduled to unveil its annual budget for fiscal year 2024-2025, the World Bank made the announcement just before announcing the bank’s decision.

There is also a possibility that the federal government will unveil the Economic Survey of Pakistan 2023-24 at 5pm today (Tuesday), a document that will outline the important socio-economic activities that have taken place during the outgoing fiscal year.

In a statement released by Najy Benhassine, World Bank Country Director for Pakistan, the World Bank said the Pakistani energy sector faces several challenges in order to achieve a reliable, affordable, and sustainable energy supply.

With such a small footprint, the Dasu Hydropower Project contributes to ‘greening’ the energy sector and reduces the cost of electricity for Pakistani consumers and businesses alike. It is one of the best hydropower projects in the world and is a game changer for the Pakistani energy industry.

According to a statement by the World Bank, when the DHP is finished, it will be able to produce approximately 4,320–5,400 megawatts of electricity.

Rikard Liden, the task team leader of the first phase of the project, recounted the importance of the project by stating that “DHP-I is an integral part of Pakistan’s plans to convert to renewable energy by 2031 and shift away from fossil fuels.”.

As for the second additional funding, Liden pointed out that it will facilitate the expansion of electricity supply to Pakistan as well as reducing Pakistan’s import bills by approximately $1.8 billion annually, as well as reducing its carbon footprint by around 5 million tons a year.

Approximately 28% of DHP-I’s economic return is estimated to be generated by its annual economic activities.”

In its report, the World Bank stated that an additional financing package for the hydropower project will also assist in supporting ongoing socioeconomic development initiatives in the Upper Kohistan region, including those focusing on improving the education system, health care system, employment opportunities, and transportation infrastructure.

In addition, the project has led to a rise of adult literacy by an estimated 30% since 2012, an increase in boys’ school enrollment by 16%, while a rise in girls’ school enrollment by 70% based on the data from this study.

Besides, the project’s support will enable the area to continue its ongoing community development activities such as improvements to roads, irrigation schemes, schools, medical facilities, mosques, bridges, solar energy systems, science laboratories, libraries, and mosques.

There is an emphasis on women beneficiaries in all of these developmental works, and the purpose is to establish free clinics/camps with female doctors and nurses, train female health workers, provide training on livelihoods, literacy and awareness raising programs for women, and establish free healthcare clinics and camps with female doctors and nurses.

Timenews1 provided that news.

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