IDA Partial Credit Guarantee for Dasu Hydropower Phase-I Project

The proposed Project would support the Government of Pakistan's efforts to (a) facilitate the expansion of electricity supply of hydro-power in Pakistan; (b) improve access to socio-economic services for local communities in the project area; and (c) build Water and Power Development Authority's (WAPDA) capacity to develop Pakistan's vast hydropower potential. The project would support: (a) construction of a main structure on the Indus River; (b) construction of two power tunnels, a power house and installation of turbines and generators of 2,160 MW installed capacity to generate over 12,000 GWh of annual clean energy; (c) preparatory work such as access roads, offices etc. ; (d) construction of a transmission line for evacuation of power; (e) implementation of social and environmental management plans, monitoring of the river, floods, and sediment; (f) construction supervision, monitoring and evaluation of the Project; and (g) project management support and capacity building of WAPDA.Based on the financing strategy for Dasu HPP, a first IDA credit of US$576.6 million (SDRs 371.9 million equivalent) is proposed for project start up and an IDA partial Credit Guarantee (PCG) of US$460 million from IDA16. In addition to the IDA Credit of US$576.6 million, an IDA Partial Credit Guarantee (PCG) of US$460 million, approval of which is being sought from the Board, would be used for extending the maturity of commercial loan for the civil works contracts. This PCG would cover Component A (US$1,479.7 million) and Component B (US$1,397.8 million).Conditions and covenants for IDA Partial Credit Guarantee for commercial financing would be agreed with WAPDA when the guarantee related agreements are finalized with financiers.The proposed Project would support the Government of Pakistan's efforts to (a) facilitate the expansion of electricity supply of hydro-power in Pakistan; (b) improve access to socio-economic services for local communities in the project area; and (c) build Water and Power Development Authority's (WAPDA) capacity to develop Pakistan's vast hydropower potential. The project would support: (a) construction of a main structure on the Indus River; (b) construction of two power tunnels, a power house and installation of turbines and generators of 2,160 MW installed capacity to generate over 12,000 GWh of annual clean energy; (c) preparatory work such as access roads, offices etc. ; (d) construction of a transmission line for evacuation of power; (e) implementation of social and environmental management plans, monitoring of the river, floods, and sediment; (f) construction supervision, monitoring and evaluation of the Project; and (g) project management support and capacity building of WAPDA.Based on the financing strategy for Dasu HPP, a first IDA credit of US$576.6 million (SDRs 371.9 million equivalent) is proposed for project start up and an IDA partial Credit Guarantee (PCG) of US$460 million from IDA16. In addition to the IDA Credit of US$576.6 million, an IDA Partial Credit Guarantee (PCG) of US$460 million, approval of which is being sought from the Board, would be used for extending the maturity of commercial loan for the civil works contracts. This PCG would cover Component A (US$1,479.7 million) and Component B (US$1,397.8 million).Conditions and covenants for IDA Partial Credit Guarantee for commercial financing would be agreed with WAPDA when the guarantee related agreements are finalized with financiers.