The World Bank Board of Directors on Wednesday approved additional funding of $ 70 million for the first phase of the Dasu Hydropower Project, which will allow Pakistan to generate low-cost, renewable energy to provide affordable electricity to millions of consumers.
The World Bank's Islamabad office said in a press release. That support for the World Bank's long-term development came at a time when the bank was working closely with the federal and provincial governments to prepare for and respond to the immediate challenge of the outbreak of the Coronavirus
The additional funds will provide transmission line financing to complete the first phase of the Dasu Hydropower Plant, which will generate 2,260 MW capacity along the Indus River.
The second phase expansion project will double the capacity to 4,320 MW, making Dasu the largest hydroelectric power plant in the country.
"Pakistan's energy sector intends to move the national grid to supply electricity to high-cost and low-cost fuels and renewable energy," said Elingo Petchamoto, World Bank's Country Director for Pakistan.
"With reforms in the tariff structure, the Dasu Hydropower Project will result in lower fuel imports, reducing the country's current account deficit," he said.
The project will help reduce the overall cost of generating electricity in Pakistan, making it more affordable for millions of electricity-consuming households and manufacturing sectors, such as manufacturing and agriculture.
The Dasu Hydropower Plant will provide more electricity during the summer months when demand is high.