World Bank Reports Delays in Dasu Hydropower Project
Transport restrictions and security challenges hamper progress
The World Bank has revealed that the 4,320 MW Dasu Hydropower Project is facing considerable delays, largely due to restrictions on ground transport for international workers and a lack of armored vehicles to ensure their safe movement.
A World Bank team visited the project site on a mission starting September 2, 2024, to evaluate progress on this multi-billion-dollar initiative. During their visit, they held discussions with officials from the Water and Power Development Authority (WAPDA) and the National Transmission and Dispatch Company (NTDC) about ongoing support for the Dasu Hydropower Stage I Project (DHP-I), which includes both the hydropower project and the associated transmission line.
In June 2024, the World Bank’s Board of Executive Directors approved an additional $1 billion for DHP-I and urged the Economic Affairs Division (EAD) to quickly finalize agreements for the IDA credit and IBRD loan, aiming to lower financing costs with concessional loans.
Despite progress, the project continues to face logistical and security issues. According to Country Director Najy Binhassine, a terrorist attack in March 2024 temporarily suspended work by Chinese contractors, prompting stricter security protocols.
The mission noted that a key milestone—starting concrete work on the integrated coffer dam—is expected to begin during the low-flow season in 2025, assuming delays with the 132 kV transmission line are addressed. The project’s success depends heavily on coordinated efforts from federal, provincial, and local governments.
Several urgent steps were identified for DHP-I:
– Immediate demolition of houses within the new footprint of the relocated Karakoram Highway and Right Bank Access Road.
– Resolving local disputes that are obstructing construction.
– Cooperation across government levels to speed up the installation of the transmission line.
Progress has been made on the 765 kV Transmission Line (DTL), with contractors placing orders for critical equipment. However, the World Bank mission stressed that NTDC must prioritize quick decision-making to accelerate the DTL’s progress.
The report emphasized that resolving land and social issues is crucial for completing the transmission lines, urging close monitoring to ensure project timelines are met.
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