LAHORE: The Water and Power Development Authority (Wapda) secured Rs144 billion for 4,320-megawatt Dasu Hydropower Project by signing an agreement with a consortium of local major banks led by Habib Bank Ltd (HBL) on Wednesday.

Wapda Chairman retired Lt Gen Muzammil Hussain, HBL President Nauman Dar, National Bank of Pakistan (NBP) President Saeed Ahmed Khan and representatives of United Bank Ltd, Bank Alfalah, Askari Bank, Faysal Bank and Meezan Bank signed the agreement on behalf of their organisations.

On the occasion, the Wapda chairman said this was the biggest single loan agreement by any public sector entity in the history of the country which reflected the confidence of financial institutions on the authority.

Mr Hussain said the Dasu Hydropower Project would be completed in two stages, each having generation capacity of 2,160MW, on River Indus in Kohsitan district of Khyber Pakhtunkhwa.

The stage-1 will be completed in five years with an estimated cost of $4.2bn for which World Bank is providing a credit of $1bn, while remaining funds are being arranged by Wapda under sovereign guarantees, he added.

Apart from the local financing of Rs144bn, a foreign loan of $350 million has also been finalised and an agreement to this effect will be signed soon, he elaborated.

Later talking to media, the Wapda chairman said that with concerted efforts the impediments in the way of ongoing water and hydropower projects have been removed.

Besides completing phase-1 of Kachhi Canal in August-December 2017, which would irrigate 72,000 acres in Balochistan, Wapda would also complete the 969MW Neelum-Jhelum Hydropower project, 1,410MW-Tarbela 4th Extension Hydropower project and 106MW Golen Gol Hydropower project in a phased manner by mid 2018, he said.

Answering a question, he said that low-cost hydro projects would help overcome electricity shortage.

He said that Diamir-Bhasha Dam was very important to enhance life of Tarbela Dam and all other low-lying dams, and work on this critical project would be started by end the current year. For financing Dasu model will be replicated.

Published in Dawn, March 30th, 2017