[image: Pakistan had envisaged that the Dasu project would be completed byDecember 2021, which would add 2,160MW of electricity to the national gridunder the first phase. PHOTO: FILE]
ISLAMABAD: The World Bank has lowered the 2,160-megawatt Dasu hydropowerproject’s rating to ‘moderately unsatisfactory’ after Pakistan could notresolve outstanding issues in the past over two years, which will now pushthe completion period beyond 2021.
It was the second downward revision in the project’s implementation ratingover the past two and a half years, indicating the systemic bureaucraticweaknesses that have started affecting strategic projects. Last time, theWorld Bank had cut the progress rating to moderately satisfactory in June2016.
The previous federal government had failed to resolve a host ofland-related issues and could not ensure safety measures, leading tocasualties. “The implementation progress of the DHP-I has remained slowerthan expected,” said the latest implementation status report of the WorldBank-funded project, released in the outgoing week.
The report noted that land acquisition has only reached 742 acres, out ofthe 1,987 acres required for construction areas. The accrued delay duringthe last two years in acquiring land has now reached a stage where itdirectly affects the pace of the main works construction, andimplementation progress has, therefore, been set to be moderatelyunsatisfactory, stated the report.
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Pakistan had envisaged completing the project by December 2021 to add2,160MW of electricity to the national grid under the first phase. Theprevious government preferred the 4,320MW Dasu hydropower project overDiamer-Bhasha dam and then prime minister Nawaz Sharif was initially keento inaugurate its first phase before the end of his five-year term in 2018.
The World Bank financing is also important for the timely completion of theproject’s first phase, which has a total cost of $4.3 billion. The bank hasalready approved $588.4 million for the scheme. It has also givenguarantees of $460 million for raising about $2.5 billion in commercialloans from domestic and foreign lenders. Owing to the slow physicalprogress, the World Bank released only $179 million or 30.4% of its loancomponent in the past four years, according to a project progress report ofthe lender.
