World Bank approves $390 million for Tarbela Hydropower Project

• 7 years ago (2016-09-22)
• David Flin

North America 999

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The World Bank has approved an additional financing of $390 million for Pakistan’s Tarbela Fourth Extension Hydropower Project to help sustainable expansion of the country’s electricity generation capacity.

A spokesman for the World Bank said: “The additional financing under Tarbela Fourth Extension Hydropower Project will add 1410 MW of environment friendly, renewable, and low-cost electricity generation during the high-demand summer season.”

The loan finances the installation of a power house at the existing Tunnel Five, increasing the total capacity at Tarbela to 6298 MW. The World Bank had previously sanctioned $840 million for the Project. Tarbela Fourth Extension is the first World Bank supported project in South Asia to be jointly financed with the Asian Infrastructure Investment Bank (AIIB), which will be providing $300 million.

The project will be financed from the AIIB, with a variable spread and 20 years maturity, including a 6-year grace period. Illango Patchamuthu, the World Bank Country Director for Pakistan, said an increased supply at competitive prices from Tunnel Five will support economic growth for all enterprises that use electricity, regardless of size or sector. He said: “In addition to reducing load shedding, it will also contribute to long term energy security.”