World Bank Seeks Urgent Reforms at Dasu Project

WB Flags CGGC Delays in Key Dasu Preparations

By DTD- On Apr 19, 2025

ISLAMABAD: The World Bank has raised serious concerns over prolonged delays and logistical constraints hampering the progress of the multi-billion-dollar Dasu Hydropower Project (DHP), urging the Pakistani government and WAPDA to revamp staff security protocols and address community-related disruptions.

In a detailed letter to the Ministry of Water Resources, WB Country Director Najy Benhassine outlined the findings of a recent implementation mission and pressed for immediate action to remove bureaucratic and security roadblocks that are severely affecting construction timelines and driving up project costs.

The Bank highlighted that extraordinary security protocols—implemented in the wake of past incidents—are now acting as a bottleneck. With over 1,700 security personnel deployed, the movement of international and local staff remains heavily restricted. Helicopter travel, the only permitted transport option for many staff, is unreliable due to weather and availability, often leaving staff stranded between Islamabad and Dasu for days.

“The restrictive system is slowing progress and keeping resources idle, which impacts supervision and construction timelines,” the Bank noted.

Further complicating the project, protests from local communities have stalled key infrastructure such as the 132kV transmission line between Dubair and Dasu. The Bank expressed frustration that 15 transmission towers remain incomplete due to community resistance in Upper Kohistan, Pattan, and Kolai Pallas. This transmission line is crucial for supplying power to initiate dam construction.

Additionally, a backlog of over 640 houses—already compensated for relocation—have yet to be demolished, obstructing critical access routes such as the Karakoram Highway Section 2 and the Right Bank Access Road. The Bank has asked both federal and provincial governments to ensure enforcement and safety for demolition teams.

The World Bank also flagged delays by the Chinese contractor CGGC in operationalizing essential preparatory infrastructure, including crushing and batching plants and cable cranes, all vital for the next phase of dam work.

With $1 billion in new financing approved last year, the Bank stressed the urgency of signing loan agreements and extending existing credits due to expire mid-2025. Without action, undisbursed amounts—over $646 million—risk being cancelled.

The Bank called on the Government of Pakistan, WAPDA, and regional authorities to “implement concerted efforts” to protect workers, resolve community grievances, and streamline approvals to prevent further setbacks in the strategic energy project.