2,160MW Dasu project: Ministry told to speed up revised PC-1 process

ISLAMABAD: The Ministry of Economic Affairs has asked the Ministry of Water Resources to expedite the submission and approval of revised PC-1 of 2,160 MW Dasu hydropower stage-1 project from the government’s competent fora in order to ensure signing and effectiveness of the negotiated loan and financing agreements well before the existing closing date, sources in the EAD told Business Recorder.

The MoEA in a letter to MoWR has informed that during negotiations for the second additional financing for the Dasu Hydropower Stage-1 project held with the World Bank on April 29, 2024 in which it was principally agreed to extend the closing date of the project (including for the subject IBRD loan for the Dasu Transmission Line) up to December 3l, 2028.

However, due to the pending approval of revised PC-1 for the Dasu Hydropower stage-1 project, the negotiated loan and financing agreements of the additional financing having incorporated the extended closing date for the project remain unsigned.

MoEA concerned about slow work at DHP

The MoEA is of the view that the fast-approaching closing date of the project (currently June 30, 2025). Ministry of Water Resources should to expedite the submission and approval of revised PC-1 to ensure signing and effectiveness of the negotiated loan and financing agreements well before the existing closing date and to ensue availability of the Additional Financing for implementation of the project activities.

The sources said, World Bank has observed that work on 4,320 MW Dasu Hydropower Project has considerably slowed down, due to restrictions on the ground-transportation of international workers and experts from Islamabad to Dasu and shortage of armored vehicles for their movement within the project areas.

A World Bank Mission was in Pakistan from September 2-13, 2024 for attestations of the facts of multibillion-dollar project.

The Mission also held meetings with authorities of Water and Power Development Authority (Wapda), and the National Transmission and Despatch Company (NTDC) for the support extended to the World Bank’s implementation support for Dasu Hydropower Stage I Project (DHP-I). DHP-I includes Dasu Hydropower Project (DHP) and Dasu Transmission Line (DTL).

The World Bank’s Board of Executive Directors approved $1 billion as the second additional financing for DHP-I on June 10, 2024, with IDA credits 7563-PK, 7564-PK, and IBRD Loan 9680-PK. The Bank had requested EAD to complete the signing of the IDA credit and IBRD loan agreements at the earliest so that the Project’s financing costs are optimized by using the concessional Shorter Maturity Loan in IDA 7563-PK.

The Bank has requested the government to take security measures to ensure the safety and security of the project personnel and to facilitate necessary movement of international workers and experts to improve the construction progress.

The mission observed that works in DHP have considerably slowed down, due to restrictions on the ground-transportation of international workers and experts from Islamabad to Dasu and requirement of armored vehicles for their movement within the project areas.

The Mission maintained that in DHP the concreting of the integrated coffer dam is the next major milestone. It is likely to start in the low-flow season of 2025 (ie, August/September 2025) given the slower progress of works since March 2024 and delay in availability of power from the 132 kilovolt (kV) transmission line, which is still under construction. To achieve this milestone and complete the preparatory works in DHP, well-coordinated support from the federal, provincial, and local governments to the Project and Wapda is necessary.

The mission appreciated the support from Commissioner Hazara in monitoring these disruptions in the project areas.

The DC Dasu, District Police Office and Wapda, need to ensure that contractors’ works are uninterrupted; and (iii) coordinated support from the federal government, Khyber Pakhtunkhwa provincial government, and the district administrations of Lower Kohistan, Kolai Pallas, and Upper Kohistan is necessary to stop further delays of the installation of this transmission line, which will supply power to the crushing and batching plants for concreting the integrated coffer dam and the main dam.

Copyright Business Recorder, 2024