World Bank greenlights $1 billion for Dasu project
The World Bank approved a $1 billion loan to finance the Dasu hydropower project in Pakistan, aiming to make electricity more affordable.
The approval marks the third significant financing of the 2160 megawatt project, which had suffered setbacks due to at least two terrorist attacks targeting Chinese nationals involved in the construction of the project.
The project had previously secured $588.4 million for preparatory works and an additional $700 million for constructing the transmission line to transmit electricity from the project.
Pakistan urgently needs to develop cheaper electricity sources as importing fuel-based power generation is expensive and is a growing burden on hospitals, factories, and mosques to connect to the national grid.
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The Dasu hydropower project, funded by the World Bank and a consortium of commercial banks, is constructed by China Gezhouba Group Company.
The Washington-based lender is set to approve the $1 billion loan package in June, slightly delayed from the tentative third-week-of-May timeline, according to government sources.
The lender will extend an additional $1 billion in loans through the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
The World Bank now estimates the project’s total cost at $4.9 billion, a 13% increase from previous estimates of $4.3 billion.
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