World Bank Approves $1bn Loan to Finance Dasu Hydropower Project

Sajjad AliBy Sajjad AliApril 14, 2024 NATIONAL NEWS

World Bank Loan for Pakistan SHARE The World Bank has approved a billion-dollar loan to fund energy projects within the country, aiming to significantly enhance Pakistan’s energy infrastructure and bolster its economic progress. This substantial loan will be dedicated to supporting the 2,160-megawatt Dasu Hydropower Project. Once operational, the Dasu project is anticipated to save Pakistan an impressive $1.8 billion annually in fuel expenses, presenting a sustainable and economical solution to the nation’s energy requirements. The World Bank’s Board of Directors is set to finalize the loan approval in June. This financial backing is crucial for ensuring the timely completion of the Dasu Hydropower Project, which has encountered delays since its inception in 2013. Initially targeted for completion by December 2021, the project is now slated to become operational by 2028. Despite these setbacks, the Dasu Hydropower Project remains pivotal to Pakistan’s energy strategy, offering affordable electricity to consumers at an incredibly low rate of three cents per unit. It’s important to note that although the project’s cost has escalated from $4.3 billion to $4.9 billion, the long-term advantages of the project far outweigh the initial investment.