The Water and Power Development Authority (Wapda) obtained Rs144 b worth of financing for Dasu Hydropower Project by signing an agreement for debt financing with a syndicate of major local banks, led by Habib Bank Limited (HBL).
This was the largest loan deal ever sanctioned for a public-sector organisation in the country’s history, which was signed on Wednesday in Wapda House, Lahore.
Today is a historic day for the development of hydroelectric power resources in Pakistan. This agreement reflects the confidence of financial institutions in the financial strength of Wapda,” said the Wapda chairmanLt Gen (Retired) Muzammil Hussain.
The audience was informed that the 4,320-megawatt Dasu Hydropower Project would be accomplished in two phases. Each phase will generate 2,160 megawatts of electricity.
Stage-I would take five years to conclude at an approximate cost of $4.2b. World Bank is providing a credit of $1b, while rest of the funds are being arranged by Wapda from its own resources and with the assistance of government’s sovereign guarantees.
Aside the local financing of Rs144b for the project, a foreign loan of $350m had also been arranged and an agreement in that regard would be signed in the not so distant future, said the Wapda chairman.
Hussain also informed about the under-construction water and hydroelectric power projects of Wapda. He said that due to strenuous efforts over the past six months, all obstacles to these projects have been removed and were now nearing completion.
According to Hussain, stage-I of the Kachhi Canal will be completed between August and December 2017, which would irrigate 72,000 acres of land in Balochistan.
Wapda will ensure completion of the 969-megawatt Neelum Jhelum Hydropower Project, 1,410-megawatt Tarbela 4th Extension Hydropower Project and 106-megawatt Golen Gol Hydropower Project by end of 2017 to mid-2018.
