The World Bank’s Board of Executive Directors has approved $1 billion in additional financing for the DASU Hydropower Stage I (DHP I) Project in Pakistan. This funding aims to expand hydropower electricity supply, enhance access to socio-economic services for local communities, and bolster the Water and Power Development Authority’s (WAPDA) capacity to prepare future hydropower projects.
“Pakistan’s energy sector suffers from multiple challenges to achieving affordable, reliable, and sustainable energy,” said Najy Benhassine, World Bank Country Director for Pakistan. “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.”
Located on the Indus River near Dasu Town in Khyber Pakhtunkhwa Province, DHP is a run-of-river project expected to have an installed capacity of 4,320–5,400 MW upon completion. The project is being constructed in stages; DHP-I will have a capacity of 2,160 MW and generate 12,225 gigawatt hours (GWh) per year of low-cost renewable energy. The subsequent stage, DHP-II, will add between 9,260–11,400 GWh annually from the same dam.
“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,” said Rikard Liden, Task Team Leader for the Project. “The second additional financing will facilitate the expansion of 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. These initiatives include improvements in education, health services, employment opportunities, and transport infrastructure. Since 2012, adult literacy has increased by approximately 30 percent due to these efforts; boys’ schooling has risen by 16 percent while girls’ schooling has surged by 70 percent during this period.
Furthermore, community development activities such as road construction, irrigation schemes, schools enhancement projects including science laboratories and libraries with a focus on women beneficiaries are part of this initiative. Free healthcare clinics staffed with female doctors/nurses are being established alongside training programs for female health workers focused on livelihoods and literacy as well as awareness-raising programs on health and hygiene.
Pakistan has been a member of the World Bank since 1950. Over this period, it has received more than $46 billion in assistance from the institution. The current portfolio includes 55 projects with a total commitment amounting to $14.7 billion.