The Water and Power Development Authority (WAPDA) is eagerly awaiting a $ 243.98 million loan from a consortium of banks to finance the Dasu hydropower project.
Officials said in a statement that WAPDA had sought proposals from banks to finance a foreign exchange portion worth $ 243.98 million of the Dasu hydropower project.
The official added that “WAPDA is seeking proposals for an Export Credit Agency Backed Buyers Credit Facility with Commercial Banks and is seeking detailed and comprehensive proposals from potential institutions with the capacity, experience and expertise required to act as principal arranger mandated for the said facility ”.
The executive committee of the National Economic Council approved the total cost of 486 billion rupees for the Dasu project in 2014. Subsequently, the World Bank approved the base cost of the project at 4.247 billion dollars of the project.
In 2015, the World Bank, in the project appraisal document, sanctioned $ 588 million to obtain the financial closure concluded under Credit-1 from the International Development Association.
The Dasu Dam is seven kilometers upstream from the city of Dasu located on the Indus River, 74 km downstream of the Diamer Bhasha Dam and 350 km from Islamabad.
The total production capacity of the hydroelectric project has been estimated at 4,320 MW. But, Phase 1 of the project has a generation capacity of 2,160 MW, which is expected to be completed within five years from the start date in June 2017.
WAPDA has so far raised 144 billion rupees in local currency from a consortium of seven local banks and secured a loan of $ 350 million from Credit Suisse AG, using the partial credit guarantee of the World Bank.
The Dasu project was awarded to a joint venture of GE Hydro China and Power China Zhongnan Engineering Corporation Ltd. The total contract value is $ 474.28 million, of which $ 243.984 million is in foreign currency.
According to the document, WAPDA would take 12 equal direct debits according to the payment schedule agreed with the electromechanical equipment supplier, and pay risk premiums and upfront interest during construction.