In a significant boost for Pakistan’s struggling economy, the World Bank approves $1 billion for the construction of the Dasu Dam. This funding aims to expand hydropower electricity supply, enhance socio-economic services for local communities, and bolster the Water and Power Development Authority’s (WAPDA) capacity for future hydropower projects.
The Dasu Hydropower Project (DHP), a run-of-river initiative on the Indus River near Dasu Town in Upper Kohistan District, Khyber Pakhtunkhwa Province, promises substantial benefits. Once completed, the dam will have an installed capacity ranging from 4,320 to 5,400 MW.
The construction will occur in phases. DHP-I, with a capacity of 2,160 MW, will generate 12,225 gigawatt hours (GWh) of low-cost renewable energy annually. The subsequent DHP-II phase will add between 9,260 and 11,400 GWh per year from the same dam. This phased approach ensures a steady increase in renewable energy output over time.
“DHP-I is a crucial project in Pakistan’s efforts to reduce its reliance on fossil fuels and achieve 60 percent renewable energy by 2031,” said Rikard Liden, Task Team Leader for the Project. The World Bank’s approval of this financing facilitates the expansion of electricity supply, potentially saving Pakistan an estimated $1.8 billion annually by reducing the need for imported fuels and offsetting approximately 5 million tons of carbon dioxide. The estimated annual economic return of DHP-I stands at around 28 percent.
As the World Bank approves this substantial investment, Pakistan moves closer to enhancing its energy infrastructure, reducing carbon emissions, and achieving a more sustainable and economically stable future. This project marks a critical step in the country’s journey towards greater energy independence and environmental sustainability.
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