World Bank approves $1bln for Pakistan.
The World Bank has sanctioned a $1 billion loan to Pakistan for the development of the Dasu Dam, as reported by The Asian Mirror.
This substantial funding is intended to boost the country’s hydropower electricity production, enhance socio-economic services for local communities, and strengthen the Water and Power Development Authority (WAPDA) in planning future hydropower initiatives.
Located on the Indus River, about 8 kilometers from Dasu Town in the Upper Kohistan District of Khyber Pakhtunkhwa Province, the Dasu Hydropower Project (DHP) is a run-of-river scheme.
Also read: 5 facts about Ajay Banga: The new Indian-origin president of World Bank
Upon completion, the dam is projected to have an installed capacity between 4,320 and 5,400 megawatts (MW).
The project is divided into phases.
The first phase, DHP-I, is set to deliver 2,160 MW and generate 12,225 gigawatt hours (GWh) of cost-effective renewable energy annually.
The subsequent phase, DHP-II, will augment the output by an additional 9,260 to 11,400 GWh per year.
Rikard Liden, Task Team Leader for the Project, emphasized the significance of DHP-I in Pakistan’s renewable energy strategy.
“DHP-I is vital for reducing Pakistan’s dependence on fossil fuels and achieving the target of 60 percent renewable energy by 2031,” he said.
Also read: World Bank looks to expand lending capacity for climate change
As World Bank approves $1bln for Pakistan, Liden further noted that the additional financing would enhance electricity supply, potentially saving Pakistan around $1.8 billion annually by replacing imported fuels and cutting approximately 5 million tons of carbon dioxide emissions.
The annual economic return of DHP-I is estimated to be around 28 percent.
