ISLAMABAD: Minister for Water and Power Khawaja Mohammad Asif said on Friday that the executive board of the World Bank is expected to approve next month a loan of $4.5 billion for the Dasu hydropower project.

Talking to newsmen after a ceremony held for signing the implementation agreement for the development of 870MW Suki Kinari hydropower project, he said funding for the construction of 4,300MW project had been arranged.

The project is being portrayed as a milestone in achieving goals set by the government in its energy policy for 2013.

According to the feasibility report, work on the project, particularly the pre-construction phase involving land acquisition, resettlement, site offices and access roads, is likely to start in the second quarter of 2014.

Mr Asif also said that Prime Minister Nawaz Sharif would perform the groundbreaking of Suki Kinari project on May 15.

In reply to a question about the setting up of two power projects in the public sector, he said the response of investors to the Gadani projects was encouraging and now the government was considering establishing 10 projects, each having the capacity of 660MW, in the private sector.

Answering a question about Kabul’s concern on the Suki Kinari project, the minister said Afghanistan had withdrawn its objection since the project was located on the river within the Pakistan territory.

Mr Asif said China was interested in setting up projects having a cumulative capacity of 20,000MW, adding there would be no loadshedding in the country after completion of these projects.

He said that due to policies of the government and an encouraging response by the international community to Pakistan in the bond market, the government would not face funding difficulties for construction of Bhasha, Bunji and Thakot projects.

The Suki Kinari project, to be constructed on the Indus River, will be completed in 2020 and inject 3,081 million units of electricity each year into the national grid.

PPIB Managing Director N.A. Zuberi and CEO of S.K. Hydro Haseeb Khan signed the agreement on behalf of their organisations.