Islamabad: The World Bank’s Board of Executive Directors approved on Tuesday a financing package from the International Development Association (IDA), the World Bank Group’s grant and low-interest arm, to help expand hydro-electricity generation in Pakistan through the development of the Dasu Hydropower Stage-I Project (DHP-I). The package consists of an IDA Credit of $588.4 million and an IDA Partial Credit Guarantee (PCG) of $460 million to help mobilize commercial financing for the project.
DHP-I would have 2,160 megawatt (MW) hydropower plant on the main Indus River, which can be expanded to 4,320 MW in future with low additional cost. The project, in addition to facilitating growth and development in Pakistan, will also help build the Water and Power Development Authority’s (WAPDA) capacity to harness the vast hydropower resources of the country in a sustainable manner.
“Dasu Hydropower Project is important for helping the people of Pakistan to reduce their carbon footprint and make electric power generation more sustainable,” said Rachid Benmessaoud, World Bank Country Director for Pakistan. “The program 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.”
DHP-I is a run-of-river project located on the Indus River about 240 km upstream from the Tarbela dam, close to Dasu town, in Kohistan district. It is an important element of the government’s strategy to restore Pakistan’s energy sector to a role that will effectively support long-term economic growth. It is a strategic investment that: (i) improves energy security and affordability through a structural shift to a low cost, low carbon fuel mix and reduced cost of electricity generation; (ii) reduces the sector deficit and saves foreign exchange of the Government of Pakistan by displacing high cost imported fuel; and (iii) builds the institutional capacity of WAPDA to harness the hydropower potential of the country in a sustainable manner, in particular the development of the Indus Cascade; and (iv) provides a financing and investment model that can be followed for other large hydropower projects in Pakistan.
The direct beneficiaries of DHP would be the millions of energy users, including industry, households and farmers who would get more electricity at lower cost and suffer fewer blackouts. The project would provide more electricity during the summer months when capacity shortages are most severe. Non-users would benefit indirectly because of higher productivity and employment, particularly in the industrial sector.
“Dasu Hydropower Project will kick start the development of the Indus Cascade that is crucial for reducing the overall cost of electricity generation based on domestic resources,” said Masood Ahmad, Task Team Leader and Lead Water Resource Specialist. “The Project would provide benefits to most sectors of the economy in Pakistan, and the population as a whole would benefit directly or indirectly.”
The DHP-I cost is estimated at about $4.2 billion and the financing plan consists of IDA credits, IDA Partial Credit Guarantees and contributions from WAPDA and the NTDC. This is the first attempt by the World Bank Group to finance a large infrastructure project on a sequential basis through a combination of credits and guarantees to mobilize the full financing over the construction period. The credit is financed from the International Development Association (IDA), the World Bank Group’s grant and low-interest arm. It will be on standard IDA terms, with a maturity of 25 years, including a grace period of 5 years.
Solar energy facility to cellular customers
Lahore: Buksh Energy has partnered with Telenor-Talkshawkto provide Solar home solutions to its cellular customers. The agreement was signed to provide state of the art technology and turnkey energy conservation solutions for the newly designed marketing campaign named Talkshawk Bijli Offer.
Buksh Energy has partnered with Telenor to provide turnkey energy conservation solutions along with its state of the art technology. The company will also assist in commissioning and deliver technical expertise to Telenor including provision of small and large home solutions; which will be awarded to cellular customers under Free Bijli Campaign.
AsimBuksh-Chairman Buksh Energy said, “Our Company is working consistently to help people in maintaining a healthier, safer lifestyle and consequently a better standard of living; making them self-reliant in getting access to sustainable energy. Through this campaign we will be providing 180 small and 4 large solar home kits to Telenor subscribers containing solar fans and LED lights”
The large home solution kit is a 1.5 KW photovoltaic system which contains LED lights, Solar Fans and other basic home appliances; feasible as an efficient energy solution in the summer season. With electricity shortage reaching at its peak, such energy solution fits well with the campaign.
Fiza Farhan-Director Buksh Energy said: “We are proud to be part of the
Free Bijli Campaign. Buksh Energy will provide solar solutions including
LED Lights and Solar Fans with a 6 hour power back up. In the summer season this is going to be one of the most popular campaigns as electricity fluctuations will raise to the maximum levels, while having a solar system in this scenario will be such a relief for the cellular customers”.