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WAPDA seeks US$ 415m loan for Dasu Stage 1

Pakistan Water & Power Development Authority (WAPDA) seeks to raise commercial financing of US$ 415 million backed by the US$ 250 million Partial Credit Guarantee (PCG) of the International Development Association (IDA) of the World Bank to meet the foreign currency needs of the first 2160 MW stage of the Dasu hydropower project on the river Indus in the northwestern province of Khyber Pakhtunkhwa.

 Interested International financial institution(s) and local bank(s) with US$ lending appetite are invited to submit proposals for a US$ 415 million unsecured term loan facility by 31 January. The targeted financial close is March 2023, according to the tender notice.

Interested financial institutions need to show a proven track record of successful foreign financing transactions with the Government of Pakistan and/or experience with IDA or International Bank for Reconstruction and Development (IBRD) guarantees as a prerequisite to submit proposals. The PCG of US$ 250 million will be the only credit enhancement/guarantee available for this transaction. The World Bank guarantee cover may not exceed 60 per cent of the total loan facility amount, according to the tender notice. The targeted tenor of the loan is between 10 to 12 years with a grace period of 4.5 years, according to the tender notice. Banks can submit two options of tenors: 10 and 12 years.

The run-of-river project, which is being built about 240 km upstream from the Tarbela dam, in the Kohistan district of the northwestern province of Khyber Pakhtunkhwa, is to be developed in two 2160 MW phases. Construction of stage I is well underway, with first power expected in 2023. Construction of the first phase, which will cost an estimated US$ 5.4 billion, comprises the civil works, a plant with initial capacity of 2160 MW and a 350 km-long, 765-kV double circuit transmission line from the plant to Islamabad. To achieve the financial close in line with the World Bank’s Project Appraisal Document (PAD), an IDA credit of US$ 573 million has been available since 2015 and WAPDA has successfully raised a PKR 144 billion loan from a consortium of seven local commercial banks. In addition, a loan of US$ 350 million was raised in 2017, from Credit Suisse using the WB’s PCG of US$ 210 million out of the total available limit of US$ 460 million

Detailed proposals in accordance with the terms and conditions set out in the RFP document should be delivered to WAPDA at the below mentioned address through courier in a sealed envelope clearly marked as “Proposal for US$ 415 Million PCG Backed Loan for Dasu” and/or e-mail no later than 14.00 hours Pakistan Standard Time on 31 January.

The Request for Proposal document can be accessed at

For further information, contact: General Manager (Finance) Power/Structured Finance Cell (SFC), WAPDA, 713- WAPDA House, Shahra-e-Quaid-e-Azam, Lahore, Pakistan; Tel.: +99 42 99202522; Fax: +99 42 99202005; Email: