The World Bank Group has approved a financing package for a hydropower project in Pakistan.
Located on the Indus River, the Dasu Hydropower Stage-I project (DHP-I) will have a total capacity of 2,160MW initially but could be expanded to 4,320MW in the future.
The International Development Association (IDA), the bank’s grant and low-interest arm, is providing a package worth more than $1 billion (£0.6bn) in total for the project.
The DHP would direct benefit millions of energy users, including industry, households and farmers and provide more electricity during the summer months when capacity shortages are most severe.
Rachid Benmessaoud, World Bank Country Director for Pakistan said: “Dasu Hydropower Project is important for helping the people of Pakistan to reduce their carbon footprint and make electric power generation more sustainable.
“The programme is an important part of the transformational energy initiative of Pakistan, in which the support from across the World Bank Group is focused on helping Pakistan’s energy sector out of its crisis and onto a more sustainable path that supports economic growth.”