The Ministry of Economic Affairs (MoEA) has urged the Ministry of Water Resources (MoWR) to accelerate the approval process for the revised PC-1 of the 2,160 MW Dasu Hydropower Stage-1 project. This step is crucial to finalize the loan and financing agreements before the existing project deadline, sources told Business Recorder.
In a letter, MoEA emphasized that during negotiations for additional financing with the World Bank on April 29, 2024, it was agreed to extend the project’s closing date until December 31, 2028. However, delays in approving the revised PC-1 have kept the negotiated agreements unsigned.
The MoEA is concerned about the approaching project deadline of June 30, 2025, and has called on MoWR to fast-track the approval to ensure timely financing for the project’s continued implementation.
The World Bank has also raised concerns over the slow progress of the Dasu Hydropower Project, citing restrictions on the transportation of international workers and a shortage of armored vehicles. During a mission visit from September 2-13, 2024, the World Bank met with key stakeholders, including the Water and Power Development Authority (WAPDA) and the National Transmission and Dispatch Company (NTDC), to discuss progress on the project.
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The World Bank approved an additional $1 billion financing for the Dasu project in June 2024, but the completion of agreements remains pending. The Bank has urged the government to ensure the safety of project personnel and improve the transportation of international experts to accelerate construction.
The mission highlighted that the next critical milestone, the concreting of the integrated coffer dam, is expected to begin in the low-flow season of 2025. However, delays in power supply from the 132 kV transmission line, which is still under construction, may further slow progress.
To meet project milestones, the World Bank stressed the importance of coordinated efforts from the federal, provincial, and local governments. Local authorities and WAPDA are urged to ensure that construction works are not interrupted and that key infrastructure like the transmission line is installed without further delays.
