The World Bank has announced a billion-dollar loan to finance energy projects in the country. This investment is expected to drive significant improvements in Pakistan's energy infrastructure and contribute to the country's economic growth.
The loan will specifically support the 2,160-megawatt Dasu Hydropower Project. Once completed, the Dasu project is projected to save Pakistan a staggering $1.8 billion annually in terms of fuel costs, offering a sustainable and cost-effective solution to the country's energy needs.
The World Bank's Board of Directors is scheduled to approve the loan in June. The financing will enable the timely completion of the Dasu Hydropower Project, which has faced delays over the past seven years since being launched in 2013. Originally slated for completion by December 2021, the project is now expected to be operational by 2028.
Despite the delays, the Dasu Hydropower Project remains a cornerstone of Pakistan's energy strategy, promising to deliver affordable electricity to consumers at the remarkably low rate of three cents per unit.
However, it's worth noting that the cost of the project has increased from $4.3 billion to $4.9 billion. Nevertheless, the long-term benefits of the project far outweigh the initial investment.
