LAHORE  - The World Bank has agreed to provide financial assistance for 4320 MW-Dasu Hydropower Project which will be constructed in phases.

This was stated by Water and Power Development Authority (WAPDA) Chairman Shakil Durrani while presiding over a meeting at WAPDA House, Lahore, to discuss the report submitted by the International Panel of Experts.

Addressing the meeting, the WAPDA Chairman said that the international financial institutions were taken keen interest in providing funds for WAPDA projects due to the excellent Economic Internal Rate of Returns (EIRR) of these schemes.

The Dasu Hydropower Project is a part of least-cost energy generation plan, being executed by the WAPDA to harness indigenous hydropower resource of the country with a view to improve the ratio of hydel electricity in the National Grid.

The project is proposed to be constructed on the Indus River, seven kilometer upstream of Dasu village and 74 kilometers downstream of Diamer-Basha Dam Project. Site of the project is situated at Karakoram Highway, about 350 kilometers away from Islamabad.

The WAPDA’s priority is to construct the Diamer Basha Dam for which land acquisition has already started and 13 contracts for offices, colonies and roads awarded. The Dasu Hydropower Project would follow the initiation of Diamer Basha Dam Project.

Detailed engineering design, PC-I and tender documents of the project are likely to be completed in early 2013. Afterwards, the construction work on the projence.

The World Bank is providing funds for preparation of detailed engineering design. On completion, the project will generate 21.3 billion units of electricity per annum. Completion of the project will also have positive impact on the existing hydel power stations including Tarbela, Ghazi Barotha and Chashma. WAPDA Member (Water), Secretary WAPDA and General Managers concerned attended the meeting.

It is pertinent to mention here that World Bank has already signed an agreement with Government of Pakistan for providing US $ 840 million for 1410 MW-Tarbela 4th Extension Project.