Pakistan, World Bank agree to expedite implementation of Dasu Hydropower Project

Pakistan and the World Bank have agreed to expedite the implementation of Dasu Hydropower Project (DHP) planned to build a 242-metre tall dam that will support a 4,320 megawatts (MW) hydropower station.

The development was shared by World Bank’s Vice President for South Asia Martin Raiser in a post on X, after a meeting with Pakistan energy ministers, Sardar Awais Ahmad Khan Laghari (Power) and Musadik Masood Malik (Petroleum).

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Both sides “reaffirmed commitment to cleaner energy and to bring system losses and costs down”, according to the Raiser, who termed it a key out come of the recently launched 10-year Country Partnership Framework (CPF).

“In my meeting with Musadik Malik we agreed to expedite the implementation of Dasu Hydropower Project,” he added.

The World Bank will dispatch Implementation Support and Progress Review Mission to monitor Dasu Hydropower Project-stage 1 from February 10- March 5, 2025 to assess the progress of the project.

The 242m (794 ft) tall dam will support a 4,320MW hydropower station, and is being built in two 2,160MW stages. The plant is expected to start generating power in July 2027.

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Last month, the Ministry of Economic Affairs expressed its serious concern at the slow implementation of the DHP, as formal signing of agreement with additional financing worth $1 billion was pending due to failure to secure approval of the revised PC-1 by the Water and Power Development Authority (Wapda).

The main reason for considerable slowing of progress is due to restrictions on ground transportation of international workers and experts from Islamabad to Dasu and shortage of armoured vehicles for their movement within the project areas.

Awais Leghari for installation of smart metres

Meanwhile, Awais Leghari urged the World Bank for provision of funds and investment for installation of smart metres at distribution level transformers to bring transparency and cater for unjust load-management due to losses at micro level, a statement from the Power Division said.

“Right now smart metres are being installed at domestic and grid level and it has helped in many ways. However, without installing smart metres at transformers level, the desired efficiency and just load management for a particular area cannot be ensured as the entire feeder has to face equal load management providing no solace to efficient consumers,” Leghari was quoted as saying in the statement.

Smart metres can also be helpful in managing peak load demand, according to the minister.

Leghari also invited the World Bank to invest in the Public Private Partnership mode in the smart metering in the Lahore Electric Supply Company (LESCO) and the Multan Electric Power Company (MEPCO). He informed that the distribution companies were next in the privatisation list.

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The meeting expressed satisfaction over the current World Bank’s portfolio of the Power Sector with agreement to further expedite utilisation of funds at the distribution companies level. It also agreed to further increase level of interaction at technical levels to provide the power sector with data necessary for better policy making and its implementation, according to the Power Division.

“The meeting agreed that longer duration electricity packages will give private sector enough time to plan their businesses accordingly.”

The World Bank’s Vice President for South Asian Region stressed upon the need for timely utilisation of funds earmarked for various projects by the Bank.

He also supported the installation of smart metre at distribution level transformers and informed the meeting that World Bank Team could work its details with the stakeholders, the Power Division statement stated.