Washington, The World Bank’s Board of Executive Directors today approved $1 billion in additional financing for the DASU Hydropower Stage I (DHP I) Project. This funding will support the expansion of hydropower electricity supply, improve access to socio-economic services for local communities, and enhance the Water and Power Development Authority’s (WAPDA) capacity to prepare for future hydropower projects.
According to The World Bank, Pakistan’s energy sector faces numerous challenges in achieving affordable, reliable, and sustainable energy. Najy Benhassine, World Bank Country Director for Pakistan, stated, “The DASU Hydropower Project site is one of the best hydropower sites in the world and is a game changer for the Pakistan energy sector. With a very small footprint, the DHP will contribute to ‘greening’ the energy sector and lowering the cost of electricity.”
The DASU Hydropower Project is a run-of-river project on the Indus River, located about 8 km from Dasu Town, the capital of 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 built in stages, with DHP-I having a capacity of 2,160 MW and expected to generate 12,225 gigawatt hours (GWh) per year of low-cost renewable energy. DHP-II will add 9,260–11,400 GWh per year from the same dam.
Rikard Liden, Task Team Leader for the Project, emphasized the project’s significance in Pakistan’s transition to renewable energy, saying, “DHP-I is an essential project in Pakistan’s efforts to reverse its dependence on fossil fuels and reach 60 percent renewable energy by 2031.” He added that the second additional financing will help expand electricity supply and potentially save Pakistan an estimated $1.8 billion annually by replacing imported fuels and offset around 5 million tons of carbon dioxide. The annual economic return of DHP-I is estimated to be around 28 percent.
The additional financing will also support ongoing socio-economic initiatives in Upper Kohistan, including education, health, employment, and transport improvements. Since 2012, adult literacy in the area has increased by an estimated 30 percent, boys’ schooling by 16 percent, and girls’ schooling by 70 percent. The project will continue community development activities such as building roads, irrigation schemes, schools, medical facilities, mosques, bridges, solar energy systems, and science laboratories and libraries, with a particular focus on women beneficiaries.
This includes establishing free healthcare clinics with women doctors and nurses, training for female health workers, and programs on livelihoods, literacy, health, and hygiene. Pakistan has been a member of the World Bank since 1950, receiving over $46 billion in assistance. The current portfolio includes 55 projects with a total commitment of $14.7 billion.