WB to provide new loan of $1bn for Dasu project

Islamabad: The World Bank will provide a new loan of $1 billion for the Dasu project after the approval of the revised PC-1 at a cost of Rs1.7 trillion.

According to media reports, a senior EAD official said that the World Bank will formally provide a new loan of $1 billion for the first phase of the Dasu Hydropower Project.

The cost of the first phase of the project has increased by 190.1 percent from Rs586 billion to Rs1,700 billion. The main reasons for this are delays in land acquisition, security concerns, and a 178 percent appreciation of the US dollar.

The first phase of the project will generate 2,160 MW of electricity, however, after the completion of the second phase of the project, it will generate 4,320 MW of electricity.

WAPDA has prepared the revised PC 1 of the project, which is now with the Minister of Water Resources and will soon be sent to the Planning Commission for approval.