The World Bank has given the green light for a second round of additional $1 billion in financing to support Pakistan’s Dasu Hydropower Stage I (DHP I) Project. This funding is part of the World Bank’s initiative to aid Pakistan in transitioning towards clean and affordable energy sources.
The project aims to expand 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 for future hydropower projects.
Scheduled a day before Pakistan’s annual budget for fiscal year 2024-2025, the financing announcement comes as the federal government is set to unveil the Economic Survey of Pakistan 2023-24, containing details of major socio-economic achievements during the outgoing fiscal year.
Najy Benhassine, the World Bank Country Director for Pakistan, highlighted the challenges faced by Pakistan’s energy sector and expressed optimism about the potential of the Dasu Hydropower Project to transform the country’s energy landscape.
The project, set to have an installed capacity of 4,320–5,400 MW upon completion, is being built in stages. DHP-I alone will generate 12,225 gigawatt hours (GWh)/year of low-cost renewable energy. Experts believe this project is crucial for Pakistan’s efforts to reduce its dependence on fossil fuels and achieve 60% renewable energy by 2031.
Additionally, the project is expected to save Pakistan an estimated $1.8 billion annually by replacing imported fuels and offset around 5 million tons of carbon dioxide.
The World Bank also emphasized the socio-economic impact of the hydropower project, highlighting improvements in the education, health, employment, and transport sectors in the Upper Kohistan region. The project has led to significant increases in adult literacy and schooling rates. Moreover, ongoing community development activities are being supported, with a focus on benefiting women and promoting their involvement in various initiatives.
