World Bank agrees to fund three hydro projects in Pakistan

The World Bank has given the Khyber-Pakhtunkwa government a positive response for funding three hydropower projects totaling 179 MW.

The projects include Gabral-Kalam Hydro Power Project (HPP) in Swat which will add 110 megawatts to the grid. The project is estimated to cost US$413 million. It also includes Barikot Patrak hydropower project in Upper Dir which is 47 megawatts with a cost of US$148 million. Shringal-Patrak hydropower project is the third project which will add 22 megawatts and is estimated to cost US$83 million.

The K-P government has been negotiating with the World Bank for securing a Rs70 billion loan to finance its developmental projects, however, no deal has been finalized yet.

'They [World Bank] have agreed to our request and are ready to grant loans for our three projects,' said a senior official of the K-P energy and power department who held a meeting with the international financial institution's delegation in Islamabad on Monday.

'We don't know about the rest of the projects but they [World Bank] are giving us loan and the first tranche would be received in July,' said the official, adding that $100 million would be paid in the first tranche for feasibility studies and detail designing and capacity building for the three projects.

'The second tranche would be given for the construction of these projects. They are okay with procurement rules and guidelines set down by the K-P government and the projects would be executed under our own guidelines,' said the official.