Asia and Oceania, Business & Finance, Finance, New Development

Major financing received for 4,320-MW Dasu hydropower project being built in Pakistan

The Pakistan Water and Power Development Authority (WAPDA) has secured PKR144 billion (US$1.37 billion) in local debt financing for the 4,320-MW Dasu hydropower project.

This financing came from a consortium of major local banks led by Habib Bank Limited, WAPDA says, and is “by far the biggest single loan agreement for any public sector entity in the history of Pakistan.”

Dasu is located on the Indus River in the Kohsitan district of Khyber Pakhtunkhwa. It will be located about 240 km upstream of the 3,480-MW Tarbela complex and 74 km downstream from the proposed Diamer Basha Dam site.

The project will be completed in two stages, each having a capacity of 2,160 MW. Stage 1 will be completed in five years with an estimated cost of US$4.2 billion, WAPDA says. This includes construction of a 242-meter-tall roller-compacted-concrete dam, underground powerhouse and switchgear cavern, and six turbine-generator units.

The World Bank is providing a credit of US$1 billion, and WAPDA is arranging the remaining funds from its own resources and with help from the sovereign guarantee of the government of Pakistan. In addition to the local financing, a “foreign loan” of US$350 million has been finalized and an agreement is soon to be signed, according to WAPDA.

The signing ceremony for the financing agreement took place on March 29.

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