Finance |
Project site is one of the best hydropower sites in the world and is a game changer for the Pakistan energy sector. With a very small footprint, the DHP will contribute to ‘greening’ the energy sector and lowering the cost of electricity.” DHP is a run-of-river project on the Indus River about
8km from Dasu Town, the capital of the Upper Kohistan District of Khyber Pakhtunkhwa Province. It is being built in stages and upon completion DHP-I will have a capacity of 2160MW, generating 12,225 GWh/yr. The DHP-II will add 9260–11,400GWh/yr from the same dam. DHP-I is viewed as being an essential part of Pakistan’s
Above: Aerial view of Enguri dam in Georgia. The EBRD is providing finance to modernise and rehabilitate this project that was built in the 1970s
new hydropower plants, the 45MW Gamri in the east of the country and the 25MW Begana in the west, aimed at strengthening Bhutan’s energy security. Nestled in the Himalayas, Bhutan has enormous hydropower potential, boasting over 35,000MW of clean renewable energy from more than 150 sites nationwide but has so far only developed just seven percent of its hydropower potential. Bhutan Finance Minister Lyonpo Lekey Dorji said: “Our nation is blessed with abundant natural resources, particularly in hydropower. By diversifying our energy sources, Bhutan is reducing its dependency on imported fossil fuels, stabilising energy costs and promoting job creation in green sectors. Pursuing the development of renewable energy resources supports Bhutan’s commitment to remaining carbon neutral and contributes to our global climate goals.” Over in Tajikistan the OPEC Fund is also providing the first US$25 million loan to support the construction of the Rogun hydropower plant, a key project of the country’s strategy for renewable energy development and energy security. The loan is the first tranche of a US$100 million OPEC Fund financing facility for the project, which is expected to have a transformative impact on the wider Central Asian region. “Tajikistan has enormous hydro energy potential and tapping into this natural wealth will strengthen energy security, independence and export capacities,” OPEC Fund President Abdulhamid Alkhalifa said. The Rogun HPP is described as not only being a monumental engineering project but also a crucial step in securing Tajikistan’s energy future. The 335m high multipurpose dam will be the tallest in the world, and will have a total generation capacity of 3780MW. In addition to meeting Tajikistan’s energy demand, it is also expected to export to neighbouring countries.
World Bank In the US, the World Bank has approved US$1billion
in a second round of additional financing for the DASU Hydropower Stage I (DHP I) Project in Pakistan. This will support expansion of hydropower electricity supply, improve access to socio-economic services for local communities, and build the Water and Power Development Authority’s (WAPDA) capacity to prepare future hydropower projects. “Pakistan’s energy sector suffers from multiple challenges to achieving affordable, reliable, and sustainable energy,” says Najy Benhassine, World Bank Country Director for Pakistan. “The DASU Hydropower
26 | January 2025 |
www.waterpowermagazine.com
efforts to reverse dependence on fossil fuels and reach 60 percent renewable energy by 2031. This financing will help expansion of electricity supplies and potentially save Pakistan an estimated US$1.8 billion annually by replacing imported fuels, and offset around five million tons of carbon dioxide. The annual economic return of DHP-I is estimated to be around 28 percent. The World Bank has also approved US$13.6 million in additional financing to supplement the ongoing US$5 million Technical Assistance for Kambarata-1 Hydropower Plant (HPP) Project in the Kyrgyz Republic. The project will support the country’s government in preparation for the hydropower project in an environmentally, technically, financially, and commercially sustainable manner. Described as being “a transformational regional
project aimed at increasing affordable energy supply”, Kambarata-1 will help to enhance energy-water management and clean energy transition in the Kyrgyz Republic and across Central Asia. It is expected to generate an average of 5600GWH/yr — almost half the Kyrgyz Republic’s current output — and reduce annual carbon emissions by five million tons. The ongoing Technical Assistance for Kambarata-1
Hydropower Plant (HPP) Project for the Kyrgyz Republic has made significant progress since its approval in 2023. This includes the commencement of the project feasibility update, preparation of environmental and social documents, as well as the establishment of a Donor Coordination Committee. The additional financing is needed to ensure comprehensive and in-depth implementation of several critical activities, including: Establishing dam safety and environmental and social panels of experts. Designing a benefit-sharing plan. Structuring the project financing plan and commercial framework. Establishing a project company, and other essential activities.
The financing is provided on highly concessional terms through the International Development Association. It comprises a US$11 million zero-interest credit, with repayments eased over 50 years and a 10-year grace period, as well as a US$2.6 million grant, which requires no repayment, from the Central Asia Water and Energy Program (CAWEP). The CAWEP is a multi-donor partnership between the World Bank, the European Union, Switzerland, and the UK, aimed at strengthening regional cooperation on water and energy security in Central Asia under a changing climate.
Unlocking potential In the UK, members of the hydro industry have
welcomed the government’s confirmation of its
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