GoP finances $1,150m on electricity from the WB

By Staff Reporter
Friday – October 16, 2020
ISLAMABAD: The government of Pakistan (GoP) signed two financing agreements with the World Bank (WB), Khyber Pakhtunkhwa Hydropower and Renewable Energy Development (KPHRED) worth $450 million and the Evacuation of Power from Dasu Hydropower phase-I (EPDH-I) worth $700 million, Thursday, to support the national grid.

According to a press release, economic affairs division (EAD) secretary Noor Ahmed, in presence of prime minister (PM) Imran Khan, signed the two loan agreements on behalf of the GoP, while representatives from the government of Khyber Pakhtunkhwa (KP), water and power development authority (WADA) and national transmission and dispatch company (NTDC) signed their respective agreements, with the WB country director (CD) Najy Benhassine.

KPHRED will support the construction of 88 megawatts (MW) Gabral-Kalam hydropower along-with the construction of 157 MW Madyan hydropower.

Its development objective is to increase renewable energy generation and strengthen the capacity of associated institutions in KP.

KPHRED is a transformational programme that will help in building capacity and institutions for harvesting the vast renewable energy potential in KP.

It will provide planning and management capability to help transform Pakhtunkhwa Energy Development Organisation (PEDO) into a world class entity for development of renewable energy resources.

While the objective of EPDH-I is the evacuation and transmission of power from 2,160 MW Dasu hydropower phase-I, to respective load centres of distribution companies (DISCOs), by construction of 765 kilovolt (kV) double circuit transmission line from Dasu hydropower power plant (HPP) to Islamabad via Mansehra.

It will also facilitate in evacuation of power from new upcoming projects in the area.

This concessional financing is being provided by the WB, for KPHRED and EPDH-I, to support hydropower and renewable energy development in KP, evacuation and transmission of power from Dasu hydropower.

At the occasion, PM Khan stated that the incumbent values its partnership with the WB and the GoP will continue with the objective of socio-economic uplift of the people.

WB CD Benhassine reiterated his commitment to support Pakistan, appreciated the incumbent’s resolve, efforts and measures in fight against COVID-19 (coronavirus) and the continuing of efforts for structural reforms.

The economic affairs minister (EAM) Makhdum Khusro Bakhtyar responded, while thanking the WB for its continued support, that the GoP is committed to continue the structural reforms process countrywide.

The minister of power (MoP) Omar Ayub Khan, KP chief minister (CM) Mahmood Khan, advisor to KP CM Himayat Ullah Khan were also present.