A $700 million additional financing has been approved by the World Bank Board of Directors to help Pakistan generate low-cost, renewable energy. It will help in the provision of affordable electricity supply to millions of users.
This support by World Bank has come for long-term development priorities at a time when it is also supporting the federal and provincial governments to prepare and respond to the current global challenge of the COVID-19 outbreak.
In order to complete the first phase of the Dasu hydropower plant, the Additional Financing for Dasu Hydropower Stage I Project will finance the transmission line. It will install 2,160 MW capacity along the main Indus River. The installed capacity will double to 4,320MW under the stage II expansion plan. If this is achieved as planned it will make Dasu the biggest hydropower plant in the country.
Illango Patchamuthu, World Bank Country Director for Pakistan said, “Pakistan’s energy sector is aiming to move away from high-cost and inefficient fossil fuels towards low-cost, renewable energy to power the national grid.”
Adding, “Along with reforms in the tariff structure, the Dasu Hydropower Project will result in fewer imports of fossil fuels, alleviating the stress on the country’s current account balance.”
This project will reduce the overall energy generation cost in Pakistan, helping millions of energy users by making electricity less costly.
The Task Team Leader for the project Rikard Liden said, “The Dasu hydropower plant has a low environmental footprint and is considered to be one of the best hydropower projects in the world.”
Adding, “It will contribute to reducing Pakistan’s reliance on fossil-fuels and producing clean renewable energy.”