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Profit WB TO GRANT $1B LOAN FOR DASU HYDROPOWER EXPANSION Monday, 15 April, 2024 I 6 Shawwal, 1445
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TOTAL PROJECTED COST FOR DASU PROJECT HAS NOW REACHED $4.9B
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BANK ANTICIPATES PROJECT TO BE COMPLETED BY 2028
Saudi Arabia to invest $1b in Reko Diq mining project PROFIT
NEWS DESK
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HE World Bank is set to approve a $1 billion loan for the Dasu hydropower project in June. This financing will support the 2,160 megawatt initiative which aims to integrate cost-effective electricity into Pakistan’s energy grid. The project is critical for reducing the nation’s reliance on expensive imported fuel and promoting sustainable energy sources. Managed by the China Gezhouba Group Company, the Dasu Hydropower Project is financed through a consortium that includes the World Bank. The funding encompasses $588.4 million allocated for preparatory works and an additional $700 million for building the transmission line to distrib-
ute the generated electricity. Despite the World Bank’s gradual shift towards budget support loans, this project financing is part of a broader effort to address Pakistan’s unsustainable debt burden by focusing on productive, long-term investments. Pakistan’s current electricity costs are high, driving an increased adoption of solar power among homes, factories, and public buildings. The total projected cost for the Dasu project has now reached $4.9 billion, which marks a 13% increase from earlier estimates. Originally slated for completion in December 2021, the World Bank now anticipates that the project will conclude by 2028, which is seven years beyond the initial deadline. Upon completion, phase one of the project is expected to replace imported fuels, saving approximately $1.8 bil-
Saudi Arabia is poised to invest up to $1 billion in the Reko Diq Copper Gold project in Pakistan’s Chagai district, Balochistan next month. This announcement was made by the Information Ministry and underscores a strengthening of economic ties between the two nations. The forthcoming Saudi investment is expected to further boost Pakistan’s mining sector, which is a critical component of the country’s economy. In preparation for this substantial investment, Pakistan’s Special Investment Facilitation Council (SIFC) has been actively working to address and remove any potential obstacles. This proactive approach is aimed at ensuring a seamless investment process. Additionally, Prime Minister Shehbaz Sharif is taking steps to ensure the effective administration of this investment.
lion annually in hard currency and reducing carbon dioxide emissions by 5 million tonnes. This project supports Pakistan’s goal to achieve 60% renewable energy by 2031.
He plans to establish a committee within the Finance Ministry that will include all relevant stakeholders in Pakistan. This committee aims to facilitate the execution and completion of the Saudi investment. Previously, in November 2023, Barrick Gold Corporation’s CEO, Mark Bristow, mentioned the possibility of Saudi Arabia acquiring a stake in Reko Diq. This potential equity purchase would involve partial ownership by Saudi Arabia, a move supported by Barrick Gold, the world’s secondlargest gold producer. The investment in Reko Diq is just a part of broader cooperation between Pakistan and Saudi Arabia in the mining sector. Future agreements are expected to expand Saudi participation in Pakistan’s energy sector, including potential stakes in leading Pakistani energy companies such as the Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL).
However, the Water and Power Development Authority currently faces challenges in securing international commercial financing, prompting the need for continued substantial financial support from international lenders.
Saudi FM-led delegation arrives in Pakistan today ISLAMABAD
STAFF REPORT
Saudi Foreign Minister Prince Faisal bin Farhan bin Abdullah will visit Pakistan from Monday (tomorrow) to Tuesday along with a high-level delegation, the Foreign Office (FO) said. The FO, in a statement, said the delegation comprises esteemed figures including Saudi Minister of Water and Agriculture Eng Abdul Rahman Abdul Mohsen AlFadley, Minister of Industry and Mineral Resources Bandar Ibrahim Alkhorayef, Deputy Minister of Investment Badr AlBadr, Head of Saudi Special Committee Mohammad Mazyed Al Towaijri, and senior officials from the Ministry of Energy and Saudi Fund for General Investments. The primary objective of the visit is to expedite the implementation of agreements made between Prime Minister Muhammad Shehbaz Sharif and Mohammad bin Salman, Crown Prince and Prime Minister of the Kingdom of Saudi Arabia, during their recent meeting in Makkah. This meeting underscored the mutual desire to elevate bilateral economic cooperation to new heights. During their stay, the Saudi delegation is scheduled to engage in crucial meetings with key figures including the president, the prime minister, the foreign minister, Chief of Army Staff (COAS), and the apex committee of the Special Investment Facilitation Council (SIFC). The statement further said that the visit is aimed at lending positive impetus to enhanced bilateral cooperation and mutually rewarding economic partnership. In a joint statement of the meeting between PM Shehbaz and Crown Prince Mohammed bin Salman, Pakistan and Saudi Arabia affirmed their commitment to expediting the first phase of Saudi investment worth $5 billion in Pakistan. The Saudi crown prince hosted the prime minister at an Iftar feast in Makkah last Sunday. During the meeting, they discussed “fortifying” the relations between the two countries and exploring avenues for enhanced collaboration across various sectors. The joint statement released by Pakistan and the Kingdom of Saudi Arabia stated that the two sides “affirmed their commitment to expediting the first wave of investment package worth $5 billion which was discussed previously”. The two sides underscored the importance of dialogue between Pakistan and India to resolve the outstanding issues between the two countries, especially the Jammu and Kashmir dispute to ensure peace and stability in the region.