The World Bank has reported significant delays in the 4,320 MW Dasu Hydropower Project, largely due to restrictions on ground transport for international workers and a shortage of armored vehicles.
A recent World Bank mission, which began on September 2, 2024, was conducted to evaluate the status of this multi-billion-dollar project. During the mission, World Bank officials met with representatives from the Water and Power Development Authority (WAPDA) and the National Transmission and Dispatch Company (NTDC) to discuss ongoing support for the Dasu Hydropower Stage I Project (DHP-I). This includes both the Dasu Hydropower Project and the associated transmission line.
In June 2024, the World Bank’s Board of Executive Directors approved an additional $1 billion in financing for DHP-I, urging the Economic Affairs Division (EAD) to swiftly finalize agreements for IDA credit and IBRD loans, aiming to reduce financing costs through concessional terms.
Despite ongoing construction, security and logistical challenges remain. Country Director Najy Binhassine noted that a terrorist attack in March 2024 temporarily suspended operations by Chinese contractors, prompting heightened security measures.
The mission identified the concreting of the integrated coffer dam as the next major milestone, expected to begin in the low-flow season of 2025. However, this depends on resolving delays in the 132 kV transmission line, which is still under construction. Coordination among federal, provincial, and local governments is crucial to the project’s success.
Key actions highlighted for DHP include:
- Immediate demolition of structures within the relocated Karakoram Highway and Right Bank Access Road area.
- Resolution of local disputes obstructing construction.
- Coordinated government efforts to expedite transmission line installation.
Progress has been noted on the 765 kV Transmission Line (DTL), with contractors placing equipment orders. The World Bank urged NTDC management to prioritize swift decision-making to advance the DTL. The mission emphasized the importance of addressing land and social issues to ensure the successful construction of the transmission lines and stressed the need for close monitoring to meet ambitious deadlines.
