In a significant boost to Pakistan’s struggling economy, the World Bank (WB) has approved $1 billion in funding for the construction of the Dasu Dam.
This financing aims to expand the hydropower electricity supply, improve access to socio-economic services for local communities, and enhance the Water and Power Development Authority’s (WAPDA) capacity to develop future hydropower projects.
The Dasu Hydropower Project (DHP) is a run-of-river initiative on the Indus River, approximately 8 km from Dasu Town, the capital of the Upper Kohistan District in Khyber Pakhtunkhwa Province. Upon completion, it will have an installed capacity of 4,320–5,400 MW.
The project is being constructed in stages. DHP-I will have a capacity of 2,160 MW and generate 12,225 gigawatt hours (GWh) per year of low-cost renewable energy. DHP-II will add 9,260–11,400 GWh annually from the same dam.
Additionally, the National Economic Council (NEC) has approved a national development outlay of Rs3.792 trillion for the fiscal year 2024-25.
“DHP-I is an essential project in Pakistan’s efforts to reduce its dependence on fossil fuels and achieve 60 percent renewable energy by 2031,” said Rikard Liden, Task Team Leader for the project. “The second additional financing will facilitate the expansion of electricity supply, potentially saving Pakistan an estimated $1.8 billion annually by replacing imported fuels and offsetting around 5 million tons of carbon dioxide. The annual economic return of DHP-I is estimated to be around 28 percent.”
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