World Bank approves $1bln for Pakistan

The World Bank has approved $1 billion for the construction of Dasu Dam in Pakistan. This financing aims to support the expansion of hydropower electricity supply, improve access to socio-economic services for local communities, and enhance the Water and Power Development Authority’s (WAPDA) capacity to prepare future hydropower projects.

Dasu Hydropower Project (DHP) is a run-of-river project located on the Indus River, approximately 8 km from Dasu Town, the capital of the Upper Kohistan District in Khyber Pakhtunkhwa Province. Upon completion, it is expected to have an installed capacity ranging from 4,320 to 5,400 MW.

The project is being constructed in stages, with DHP-I having a capacity of 2,160 MW and expected to generate 12,225 gigawatt hours (GWh) of low-cost renewable energy annually. DHP-II, on the other hand, will add 9,260–11,400 GWh per year from the same dam.

According to Rikard Liden, Task Team Leader for the Project, DHP-I is crucial for Pakistan's efforts to reduce its dependence on fossil fuels and achieve its goal of reaching 60 percent renewable energy by 2031. The additional financing for the project is expected to contribute significantly to expanding electricity supply, potentially saving Pakistan an estimated $1.8 billion annually by replacing imported fuels and offsetting around 5 million tons of carbon dioxide emissions. The economic return of DHP-I is estimated to be around 28 percent annually.