Pakistan, World Bank sign $1.15 billion agreements for two power projects

ISLAMABAD: The World Bank will provide $1.15 billion concessional financing for the two projects to support hydropower and renewable energy development in Khyber Pakhtunkhwa, and transmission of power from Dasu Hydropower Project.

Prime Minister Imran Khan witnessed the signing ceremony of two financing agreements. Federal Minister for Economic Affairs Makhdum Khusro Bakhtiar, Federal Minister for Power Omar Ayub Khan and Chief Minister Khyber Pakhtunkhwa Mahmood Khan were also present.

The concessional financing being provided by the World Bank for the two projects to support hydropower and renewable energy development in Khyber Pakhtunkhwa, evacuation and transmission of power from Dasu Hydropower Project.

Under the one financing agreement, the World Bank will provide 450 million for the Khyber Pakhtunkhwa Hydropower and Renewable Energy Development Project.

The project’s development objective is to increase renewable energy generation and strengthen the capacity of associated institutions in Khyber Pakhtunkhwa. The project is a transformational program that would help in building capacity and institutions for harvesting the vast renewable energy potential of the province.

The project will support the construction of 88MW Gabral-Kalam Hydropower Project and 157MW Madyan Hydropower Project. It would provide planning and management capability to help transform Pakhtunkhwa Energy Development Organization (PEDO) into a world class entity for the development of renewable energy resources.

Under the second financing agreement, the World Bank will provide 700 million dollars for evacuation of power from Dasu Hydropower (Phase-I) Project.

The objective of the project is evacuation and transmission of power from 2160 MW Dasu Hydropower (Phase-I) Project to respective load centers by construction of a 765 kV double circuit transmission line. It will also facilitate in the evacuation of power from new upcoming projects in that area.

Secretary Economic Affairs Division Noor Ahmed signed the two loan agreements on behalf of the government of Pakistan while the representatives of the Government of Khyber Pakhtunkhwa, WAPDA and National Transmission and Dispatch Company (NTDC) signed their respective project agreements.

World Bank Country Director Najy Benhassine signed the agreements on behalf of the global financial institution. He reiterated his commitment to support Pakistan and appreciated the government’s resolve, efforts and measures in the fight against COVID-19 and continuing efforts for structural reforms.