World Bank Approves $1 Billion for Dasu Hydropower Project
The World Bank has sanctioned an additional $1 billion for the Dasu Hydropower Project (DHP) in Khyber Pakhtunkhwa’s Upper Kohistan district. This financing aims to enhance hydropower electricity supply, boost local community services, and strengthen the Water and Power Development Authority’s (WAPDA) capacity for future projects.
On Monday, the World Bank’s Board of Executive Directors approved this second round of financing for the Dasu Hydropower Stage I (DHP I) Project, emphasizing its role in addressing Pakistan’s energy sector challenges.
A Major Boost for Renewable Energy
World Bank Country Director for Pakistan, Najy Benhassine, hailed the Dasu site as one of the best hydropower locations globally, projecting it as a transformative element for Pakistan’s energy sector. The project, with minimal environmental impact, promises to advance green energy and reduce electricity costs.
Rikard Liden, the task team leader, underlined DHP-I’s crucial role in reducing Pakistan’s dependence on fossil fuels. The additional funding is expected to expand electricity supply, save an estimated $1.8 billion annually by substituting imported fuels, and cut around 5 million tons of carbon dioxide emissions.
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Economic and Social Benefits
The annual economic return for DHP-I is estimated at 28%. Upon completion, the Dasu project will boast an installed capacity of 4,320–5,400 megawatts (MW). DHP-I alone will generate 12,225 gigawatt hours (GWh) of low-cost renewable energy annually, while DHP-II is projected to add 9,260–11,400 GWh per year.
Since the project’s initiation, it has significantly impacted local socio-economic conditions. Adult literacy has increased by 30%, boys’ schooling by 16%, and girls’ schooling by 70% since 2012. The additional financing will further support initiatives in education, health, employment, and transport in Upper Kohistan.
The World Bank’s continued investment in the Dasu Hydropower Project underscores its commitment to fostering sustainable energy solutions and improving the quality of life for local communities in Pakistan.
