Dasu hydropower project: WAPDA, local banks discuss possible financing agreement
First project being considered for local financing, says WAPDA chief.
The Wapda chief added that based on the Dasu project’s feasibility report, the authority should be evaluated on its asset base, good loan repayment history and investment opportunities. PHOTO: INP
LAHORE:
In addition to World Bank’s (WB) partial financing, a local mode of funding is being explored for the construction of Stage-I of the Dasu Hydropower Project.
In order to discuss the methodology, a meeting was held on Friday in which chiefs and senior officials of eight major banks in Pakistan met with officials of the Water and Power Development Authority (Wapda).
The representatives of National Bank, Habib Bank, United Bank, Allied Bank, MCB Bank, Dubai Islamic Bank, Meezan Bank and Standard Chartered Bank, Ministry of Finance and the State Bank of Pakistan were present at the meeting.
Though the WB is providing partial financing for the project in addition to using its guarantee to generate resources from the commercial market, Wapda wants to generate $1.28 billion from the local market.
Speaking on the occasion, Mahmood said that since its establishment as an independent authority in 1958, Wapda has relied on international financing institutions and multilateral donors for construction of mega hydel projects in the country.
He said that it is for the first time that a local mode of financing is being explored for construction of Dasu project by involving Pakistan’s financial market. He said it is an encouraging sign that local banks are keen to partner in financing the local project.
The Wapda chief added that based on the Dasu project’s feasibility report, the authority should be evaluated on its asset base, good loan repayment history and investment opportunities.
The banking sector’s representatives appreciated the involvement of local bodies in development projects. They added that options are being considered to finalise a financing plan for the hydropower project.
Wapda had already organised a road show in Karachi in January to apprise the financial institutions of the investment opportunities ahead of the project’s implementation.
Published in The Express Tribune, May 9th, 2015.
In addition to World Bank’s (WB) partial financing, a local mode of funding is being explored for the construction of Stage-I of the Dasu Hydropower Project.
In order to discuss the methodology, a meeting was held on Friday in which chiefs and senior officials of eight major banks in Pakistan met with officials of the Water and Power Development Authority (Wapda).
The representatives of National Bank, Habib Bank, United Bank, Allied Bank, MCB Bank, Dubai Islamic Bank, Meezan Bank and Standard Chartered Bank, Ministry of Finance and the State Bank of Pakistan were present at the meeting.
Though the WB is providing partial financing for the project in addition to using its guarantee to generate resources from the commercial market, Wapda wants to generate $1.28 billion from the local market.
Speaking on the occasion, Mahmood said that since its establishment as an independent authority in 1958, Wapda has relied on international financing institutions and multilateral donors for construction of mega hydel projects in the country.
He said that it is for the first time that a local mode of financing is being explored for construction of Dasu project by involving Pakistan’s financial market. He said it is an encouraging sign that local banks are keen to partner in financing the local project.
The Wapda chief added that based on the Dasu project’s feasibility report, the authority should be evaluated on its asset base, good loan repayment history and investment opportunities.
The banking sector’s representatives appreciated the involvement of local bodies in development projects. They added that options are being considered to finalise a financing plan for the hydropower project.
Wapda had already organised a road show in Karachi in January to apprise the financial institutions of the investment opportunities ahead of the project’s implementation.
Published in The Express Tribune, May 9th, 2015.