ISLAMABAD: World Bank will provide $ one billion loan for 2,160 megawatts Dasu hydropower project-crucial initiative aimed at integrating cheaper electricity into Pakistan's energy mix and showcasing nation's resilience against adversaries.

This marks third major financing by World Bank for project, which has faced delays and endured at least two terrorist attacks targeting Chinese nationals involved in its construction.

Government sources disclosed that Board of Directors of Washington-based lender is set to approve $ one billion loan package in June, slightly delayed from tentative third-week-of-May timeline.

China Gezhouba Group Company serves as contractor for Dasu Hydropower Project, funded by World Bank and consortium of commercial banks.

According to World Bank project document, lender will extend an additional $ one billion in loans through its International Bank for Reconstruction and Development and International Development Association.

This constitutes third major financing by lender for the project, which also secured $ 588.4 million for preparatory works and an additional $ 700 million for constructing transmission line to transmit electricity from project.

World Bank now estimates project's total cost at $ 4.9 billion, 13 percent increase from previous estimates of $ 4.3 billion.

Published in The Daily National Courier, April, 15 2024

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