World Bank to finance Rs187.6 bn power projects

ISLAMABAD: Prime Minister Imran Khan Thursday witnessed the signing ceremony of two financing agreements worth $1,150 million (Rs187.6 billion) with the World Bank regarding hydropower and renewable energy development.

Minister for Economic Affairs Khusro Bakhtiar, Minister for Power Omar Ayub Khan, Khyber Pakhtunkhwa Chief Minister Mehmood Khan and Adviser to KP CM Himayatullah Khan were present on the occasion.

This is concessional financing being provided by the World Bank for the two projects to support hydropower and renewable energy development in KP, evacuation and transmission of power from DASU Hydropower Project.

The development objective of KP Hydropower and Renewable Energy Development (KHRE) Project worth $450 million is to increase renewable energy generation and strengthen the capacity of associated institutions in KP.

The project is a transformational programme that would help in building capacity and institutions for harvesting the vast renewable energy potential of the KP. The project will support the (i) construction of 88MW Gabral-Kalam Hydropower Project; and (ii) construction of 157MW Madyan Hydropower Project. It would provide planning and management capability to help transform Pakhtunkhwa Energy Development Organisation (PEDO) into a world class entity for development of renewable energy resources.

Evacuation of Power from DASU Hydropower (Phase-I) Project worth $700 million aims evacuation and transmission of power from 2,160MW Dasu Hydropower (Phase-I) Project to respective load centres of Discos by construction of 765KV double circuit transmission line from DASU HPP to Islamabad via Mansehra. It will also facilitate in evacuation of power from new upcoming projects in that area.

Noor Ahmed, Secretary, Economic Affairs Division, signed the two loan agreements on behalf of Government of Pakistan, while the representatives of Government of Khyber Pakhtunkhwa, Wapda and National Transmission and Dispatch Company (NTDC) signed their respective project agreements. Najy Benhassine, Country Director, World Bank signed the agreements on behalf of the World Bank.

Imran Khan stated that Pakistan values its partnership with the World Bank and the government will continue with the objective of socio-economic uplift of the people of Pakistan. The country director of WB reiterated his commitment to support Pakistan and appreciated the government’s resolve, efforts and measures in the fight against COVID-19 and continuing efforts for structural reforms.

Khusro Bakhtiar, while thanking the World Bank for its continued support said that Government of Pakistan is committed to continue structural reforms process in the country.