WB approves $1bn additional financing for Dasu project

ISLAMABAD: The World Bank on Tuesday approved $1 billion in the second round of additional financing for Pakistan to fund the Dasu Hydropower Stage I (DHP I) Project. This move by the global bank’s Board of Executive Directors will support the country’s transition towards clean and affordable energy.

“This financing will support the expansion of hydropower electricity supply, improve access to socio-economic services for local communities, and build the Water and Power Development Authority’s capacity to prepare future hydropower projects,” read a statement released by the World Bank. The World Bank’s announcement comes just a day before Pakistan is set to unveil its annual budget for fiscal year 2024-2025.

World Bank Country Director for Pakistan, Najy Benhassine, in a statement said: “The Dasu Hydropower Project site is one of the best hydropower sites in the world and is a game changer for the Pakistan energy sector. With a very small footprint, the DHP will contribute to ‘greening’ the energy sector and lowering the cost of electricity.”

In its statement, the World Bank mentioned that the DHP will have an installed capacity of 4,320–5,400 MW upon completion. “The project is being built in stages. DHP-I has a capacity of 2,160 MW and will generate 12,225 gigawatt hours (GWh)/year of low-cost renewable energy. The DHP-II will add 9,260–11,400 GWh per year from the same dam,” said the World Bank.