2 weeks Ago By Fawad Yousafzai
ISLAMABAD - The World Bank has agreed to provide an additional financing of $ 1 billion to Pakistan in order to meet the increase in the cost of Stage-I of Dasu Hydropower Project (2160MW). The estimated cost of the project has escalated by approximately 263 per cent to Rs 1.74 trillion from the earlier Rs 486 billion, and the World Bank has intended to provide additional financing for the project, official source told The Nation.
According to the source, Rs. 1.449 trillion of the total cost will be financed through local and foreign loans, while the remaining will be injected through WAPDA’s equity.
Giving the details, the source said that initially, funding for the implementation of the project was confirmed by the World Bank Mission in 2013. At that stage, the priority was to mobilize financing and complete Stage-I so that 2160 MW capacity and generation of 12,225 GWh can be brought online. The World Bank Board of Directors in May 2014 had approved financing of $588.
4 million along with Partial Credit Guarantee (PCG of $460 million for Stage-I of the Project. It was agreed that PCG would be used for raising foreign commercial financing. PM urges Iran to swiftly arrest killers of 8 Pakistanis Subsequently, a foreign commercial loan of $350 million was raised using WB PCG of $210 million.
Moreover, WAPDA raised Rs. 144 billion from a consortium of local commercial banks led by HBL. An agreement between the Government of Pakistan, WAPDA, and the World Bank for an IDA Credit of $588.
40 million along with an IDA PCG of $460 million was signed on August 25, 2014. The loan agreement is effective since November 20, 2014. The loan amount has been reduced from $588.
40 million to $517 million due to USD to SDR parity. US$ 359.64 million utilized as of May 31, 2024.
Similarly, an agreement with Local Commercial Bank led by M/s HBL for financing up to Rs. 144.00 billion was signed on March 29, 2017 and Rs79.
06 billion were utilized as of May 31, 2024. So loans were also arranged from Foreign Commercial Bank and an agreement with M/s Credit Suisse Bank for US$ 350 million Credit was signed on June 29, 2017. Pakistan, US agree on sustained coop for strategic interests In view of the expected increase in the cost of Stage-I, the World Bank intended to provide additional financing of US$ 1 billion for Stage-I of the Project.
CDWP had already approved the Position Paper for in this regard. The World Bank additional financing would be a mix of IDA Credit/ Loan and IBRD Loan. As per 2nd Revised PC-I, the Stage-I cost is Rs.
1.74 trillion including IDC of Rs. 479.
254 billion. The estimated interest rate on debt is varied from source to source with the World Bank loan costing 15 per cent interest rate, loans from local banks at 14.66 per cent interest rate and foreign commercial loans at 5.
34 per cent, the source said. Beside loans from various sources, WAPDA will inject Rs. 288,929 million as equity.
Out of it, Rs. 191,245 Million will be used to finance “project cost without IDC” and an amount of Rs. 97,684 Million, already paid by WAPDA against IDC till June 2024, is considered as equity, the source informed.
Israeli forces bomb last functioning hospital in Gaza Tags: wb agrees provide funds.
