ISLAMABAD: An amount of $4.2 billion required for the 4,230MW Dasu Hydropower Project has been arranged and the construction work will begin this year, according to chief of the Water and Power Development Authority (Wapda).

Wapda Chairman Raghib Abbas Shah told the Senate Standing Committee on Water and Power on Wednesday that board of governors of the World Bank was expected to approve the project at its meeting next month.

He said that after completion of its first phase, which involves construction of two tunnels, the project would begin producing 2,160MW of electricity.

Upon completion of the second phase by 2019, the project’s capacity would go up to 4,230MW.

Mr Shah said the project was the first one for which the World Bank had agreed to finance even land acquisition, thus facilitating its launch this year.

He said the German government would provide $1bn for the project, the Industrial and Commercial Bank of China $2bn, the World Bank $500 million and the remaining $700m would be arranged by the government and Wapda.

Answering a question, the Wapda chief told the committee that order for the project was expected to be issued next month after vetting of contractors by the Pakistan Engineering Council.

He said that 70 per cent of the work would be awarded to international contractors and the remaining 30 per cent to local companies.

Mr Shah said that after completion the Dasu project would generate 12bn units of electricity every year.

Initially, he said, the World Bank offered to support the construction of only two tunnels but on the government’s request later agreed to help build all the four tunnels of the project.

He said the government was in contact with the World Bank to allay the latter’s concerns over the Diamer-Bhasha dam project which could be built in six years at an estimated cost of $12bn.

Minister of State for Water and Power Abid Sher Ali assured the Senators that he would provide to them the lists of boards of directors of all electricity distribution companies, except K-Electric, within a week.