The World Bank’s Board of Executive Directors has approved a second round of additional financing, amounting to $1 billion, for the Dasu Hydropower Stage I (DHP I) Project. This financing aims to expand hydropower electricity supply, enhance access to socio-economic services for local communities, and strengthen the Water and Power Development Authority’s (WAPDA) capacity to prepare future hydropower projects.
“Pakistan’s energy sector suffers from multiple challenges to achieving affordable, reliable, and sustainable energy,” said Najy Benhassine, World Bank Country Director for Pakistan. The Dasu Hydropower Project is expected to be a transformative project for Pakistan’s energy sector. It will contribute to making the energy sector greener and reducing electricity costs with its small footprint and significant energy output.
The Dasu Hydropower Project, located on the Indus River near Dasu Town in Upper Kohistan District, Khyber Pakhtunkhwa, is a run-of-river project that will have an installed capacity of 4,320–5,400 MW upon completion. The project is being constructed in stages, with DHP-I having a capacity of 2,160 MW, generating 12,225 gigawatt hours (GWh) of low-cost renewable energy annually. The subsequent stage, DHP-II, will add 9,260–11,400 GWh per year from the same dam.
“DHP-I is an essential project in Pakistan’s efforts to reverse its dependence on fossil fuels and reach 60 percent renewable energy by 2031,” said Rikard Liden, Task Team Leader for the Project. The additional financing will help expand electricity supply and is expected to save Pakistan around $1.8 billion annually by replacing imported fuels, and offset approximately 5 million tons of carbon dioxide. The economic return of DHP-I is estimated to be around 28% annually.
Moreover, the additional financing will support ongoing socio-economic initiatives in Upper Kohistan, especially in education, health, employment, and transport sectors, further benefiting the local communities.
