ISLAMABAD – The federal finance minister Ishaq Dar has been gearing up for the meeting with World Bank’s management to secure loan worth $ 1.7 billion and for that in a special effort he made the federal government to clear first phase of Dasu Hydro-Power Project.
According to the details, the World Bank’s management had showed interest in leasing out major projects in Pakistan including Dasu Hydro-Power Project. World Bank was willing to give loan worth $ 700 million for this power generation project.
In order to keep World Bank’s interest alive, the federal government of Pakistan cleared the Rs 486 billion first phase of the Dasu Hydropower Project to pave the way for approval of a $700 million loan by the board of directors of the World Bank.
The WB board is expected to approve the loan in May and a government team led Ishaq Dar will brief the bank’s management about the project during its spring meetings scheduled for April 11-13 in Washington.
On Friday, a meeting of the Executive Committee of the National Economic Council (Ecnec), presided over by the finance minister, approved a rationalised cost of Rs 486 billion for the Dasu Hydro Power Project (Stage-I) with a foreign exchange component of Rs 218.5 billion.
To be located in upper Kohistan district of Khyber Pakhtunkhwa, the total generation capacity of the entire project (phase-1 and 2) is estimated at 4,320MW.
The stage-I envisages construction of a 2,160MW hydropower project and acquisition of land, including resettlement, construction of offices, colonies, project access roads and pre-construction activities. The stage will be completed in five years. The project will generate electricity at a cost of Rs 2.14 per unit.