The government plans to obtain Rs. 827 billion in external financing for the Diamer Basha project

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2022-06-21 14:06:45
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The Pakistani government will seek Rs. 827 billion in funding from several donor agencies and banks to build 4,500 MW energy production facility at the Diamer Basha Dam Project.

According to official documents obtained by ProPakistani, the Federal government and WAPDA will contribute 11 percent of the total anticipated cost of Rs. 933.58 billion for the Power Generation Facilities at Basha, with the remaining funds coming from various sources.

The funding will be secured with the help of the Pakistani government"s PSDP, WAPDA"s own resources, donor organisations, supplier credit/export credit bureaus, and local and international banks. WAPDA has identified source-by-source recommended finance for the project, according to information shared with the federal government.

The federal government would contribute Rs. 70 billion (7%) under the Public Sector Development Programme (PSDP), while WAPDA will contribute Rs. 36 billion, or 4% of the overall expenditure. Foreign Commercial Financing will provide a significant chunk of the funding. Foreign Commercial Financing is expected to provide Rs. 401 billion (43%) of the required funds.

Rs. 200 billion (21%) would be raised through local commercial finance, while Rs. 229 billion (24%) will be procured through IDC Financing. The project is expected to begin generating power in 2029-30 and will add 4,500 MW to the national grid.