The World Bank (WB) has approved a new $1 billion loan for the first phase of the Dasu Hydropower Project after the revision of PC-1, which includes updated completion timelines.
According to a senior official from the Economic Affairs Division (EAD), the cost of Stage I has poured by 190.1%, rising from Rs586 billion to Rs1,700 billion. This substantial increase is due to delays in land procurement, security challenges, and a 178% rise in the US dollar’s value.
Stage I of the project is expected to generate 2,160 MW, while the completion of Stage II will increase total capacity to 4,320 MW. Located on the Indus River in Upper Kohistan, Khyber Pakhtunkhwa, the project is now scheduled for completion between 2027 and 2028, instead of the original 2023-24 timeline.
The new financing includes $800 million from the International Development Association (IDA) and $200 million from the International Bank for Rebuilding and Development (IBRD). Of this, Pakistan will receive $435 million from IDA at zero interest, $365 million at an interest rate of 5.83%, and $200 million from IBRD at 6.13%.
