The World Bank has reported significant delays in the 4,320 MW Dasu Hydropower Project due to restrictions on the ground transportation of international workers and a shortage of armored vehicles for their movement.

A recent mission from the World Bank, which took place from September 2, 2024, was conducted to assess the status of this multi-billion-dollar project.

During the mission, officials from the World Bank met with representatives from the Water and Power Development Authority (WAPDA) and the National Transmission and Dispatch Company (NTDC) to discuss support for the Dasu Hydropower Stage I Project (DHP-I). This project includes both the Dasu Hydropower Project and the Dasu Transmission Line.

In June 2024, the World Bank’s Board of Executive Directors approved an additional $1 billion in financing for DHP-I, requesting swift action from the Economic Affairs Division (EAD) to finalize IDA credit and IBRD loan agreements. The aim is to optimize financing costs through concessional loans.

Despite ongoing construction, security and logistics challenges persist. Country Director Najy Binhassine noted that a terrorist attack in March 2024 had temporarily halted operations by Chinese contractors and led to increased security measures.

The mission indicated that the next major milestone for the project—the concreting of the integrated coffer dam—is expected to commence in the low-flow season of 2025, contingent on the resolution of delays in the 132 kV transmission line, which is still under construction. Coordinated support from federal, provincial, and local governments is deemed essential for the project’s success.

Key actions outlined for DHP include:

• Immediate demolition of houses in the footprint of the relocated Karakoram Highway and Right Bank Access Road.
• Resolution of local disputes that are hindering construction progress.
• Collaborative efforts among various government levels to expedite the transmission line installation. -nProgress has been reported on the 765 kV Transmission Line (DTL), with contractors placing orders for key equipment. However, the mission emphasized the need for NTDC management to prioritize timely decision-making to enhance the DTL’s progress.

The World Bank’s mission highlighted that addressing land and social issues is critical for successfully constructing the transmission lines and underscored the importance of monitoring progress closely to meet ambitious timelines.

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