World Bank Approves $1 Billion for Dasu Project
The World Bank has approved $1 billion in additional financing for Pakistan’s Dasu Hydropower Stage I (DHP I) Project. This funding aims to expand hydropower electricity supply and improve socio-economic services for local communities. The project is seen as a game changer for Pakistan’s energy sector.
A Move Towards Clean Energy
The World Bank’s Board of Executive Directors supports Pakistan’s transition towards clean and affordable energy. The financing will help the Water and Power Development Authority (WAPDA) prepare for future hydropower projects. The announcement coincides with Pakistan unveiling its annual budget for fiscal year 2024–2025.
Enhancing the Energy Sector
Najy Benhassine, World Bank Country Director for Pakistan, highlighted the challenges in Pakistan’s energy sector. He emphasized the potential of the Dasu Hydropower Project site, calling it one of the best in the world. The project will contribute to greening the energy sector and lowering electricity costs.
Project Details
The Dasu Hydropower Project will have an installed capacity of 4,320–5,400 MW upon completion. It is being built in stages. DHP-I will generate 12,225 gigawatt hours (GWh) of low-cost renewable energy per year. DHP-II will add 9,260–11,400 GWh per year from the same dam. Read: Budget 2024-25: Managing the Deficit
Economic and Environmental Impact
Rikard Liden, the project’s Task Team Leader, stated that DHP-I is crucial for Pakistan’s shift from fossil fuels to renewable energy. The project aims to help Pakistan achieve 60 percent renewable energy by 2031. The financing will save 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.
Socio-Economic Benefits
The additional financing will support ongoing socio-economic initiatives in the Upper Kohistan region. These initiatives include improvements in education, health, employment, and transport sectors. Since 2012, adult literacy in the area has increased by 30%. Boys’ schooling has increased by 16%, and girls’ schooling has increased by 70%.
Community Development Activities
The project will continue to support community development activities. These include building roads, irrigation schemes, schools, medical facilities, mosques, bridges, solar energy systems, and science laboratories and libraries. There will be a special emphasis on female beneficiaries. The project will establish free healthcare clinics with female doctors and nurses. It will conduct training for female health workers and on livelihoods and literacy for women. It will also hold awareness programs on health and hygiene.
In conclusion, the World Bank has taken a significant step towards Pakistan’s sustainable energy future by providing additional financing for the Dasu Hydropower Stage I Project. Moreover, this support not only expands hydropower electricity but also enhances socio-economic services for local communities. Consequently, this project is expected to bring long-term benefits to Pakistan’s economy and environment.
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