The World Bank has started appraising the government’s request for a $700 million credit for expansion of electricity supply from Dasu Hydropower Project (DHP).
According to project information document released by the World Bank, the loan is expected to be approved by the bank’s executive board next month.
The proposed loan from the International Development Association will be utilised as additional financing for first phase of Dasu project, and will cover cost of construction of a 255km long, 765kV high-voltage alternating current transmission line from the DHP-I to the Islamabad West and Mansehra substations, that would not only have capacity to carry power generation from Dasu project but also for future expansions of lines to other parts of the country.
The DHP is essential for addressing the key issues faced by the country’s power sector by adding renewable generation at lower cost and reducing the foreign currency requirements by using domestically-available hydropower.
In FY19, 40pc of the electricity power generated and over 60pc of thermal generation was through imported fuel, requiring $4 billion in foreign currency in fuel payments for power generation.
