ISLAMABAD: The World Bank has announced to inject a hefty $1 billion loan into energy initiatives in Pakistan. This investment is expected to catalyze significant enhancements in the country’s energy infrastructure and contribute to the country’s economic growth.
The loan will particularly support the 2,160-megawatt Dasu Hydropower Project. Upon its completion, the Dasu project is forecasted to yield remarkable savings of $1.8 billion annually for Pakistan by reducing fuel costs, presenting a sustainable and economically viable solution to the nation’s energy demands.
Scheduled for approval by the World Bank’s Board of Directors in June, this financing is instrumental in ensuring the timely realization of the Dasu Hydropower Project, which has encountered delays since its inception in 2013. Initially slated for completion by December 2021, the project’s operational timeline has been revised to 2028.
Despite these setbacks, the Dasu Hydropower Project remains pivotal to Pakistan’s energy strategy, offering consumers access to affordable electricity at a remarkably low rate of three cents per unit.
It is important to note that the project’s cost has escalated from $4.3 billion to $4.9 billion. However, the long-term advantages of the project far exceed the initial investment.
