The World Bank Dasu Hydropower Stage I Project (P121507) REPORT NO.: RES59681 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF DASU HYDROPOWER STAGE I PROJECT APPROVED ON JUNE 10, 2014 TO ISLAMIC REPUBLIC OF PAKISTAN ENERGY & EXTRACTIVES SOUTH ASIA Regional Vice President: Martin Raiser Country Director: Najy Benhassine Regional Director: Pankaj Gupta Practice Manager/Manager: Simon J. Stolp Task Team Leader(s): Mats Johan Rikard Liden, Gunjan Gautam The World Bank Dasu Hydropower Stage I Project (P121507) I. BASIC DATA Product Information Project ID Financing Instrument P121507 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 10-Jun-2014 31-May-2024 Organizations Borrower Responsible Agency National Transmission and Despatch Company,Water Islamic Republic of Pakistan and Power Development Authority (WAPDA) Project Development Objective (PDO) Original PDO The overall project development objective is to facilitate the expansion of electricity supply of hydro-power in Pakistan. The Project would also improve access to socio-economic services for local communities in the project area and build WAPDA’s capacity to prepare future hydropower projects. This would be achieved by installing a 2,160 MW hydropower plant on the main Indus River, which can be expanded to 4,320 MW in future at very low cost. The Project is a “high-risk-high reward” operation aimed at providing low cost non-carbon renewable energy. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-90760 31-Mar-2020 15-Oct-2020 30-Jun-2021 31-May-2024 700.00 103.17 596.83 IDA-54970 10-Jun-2014 25-Aug-2014 20-Nov-2014 31-May-2024 190.30 0 161.94 IDA-54980 10-Jun-2014 25-Aug-2014 20-Nov-2014 31-May-2024 398.10 346.73 8.93 The World Bank Dasu Hydropower Stage I Project (P121507) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The proposed restructuring is to extend the Closing Date for IBRD Loan – 9076-Pk (“IBRD Loan”), which is financing the Transmission Component of the Dasu Hydropower Stage I Project (P121507) or “the Project.” The National Transmission and Despatch Company (NTDC) implements the Transmission Component. The Economic Affairs Division (EAD), through its letter dated December 20, 2023, requested extension of the Closing Date till June 30, 2025 to continue the construction of a 765 kilo-volt (kV) transmission line from Dasu Hydropower Plant to Islamabad West Substation. The Closing Date will be extended by 13 months though this first extension of the IBRD Loan. The key contracts under the Transmission Component have been awarded with a total amount of US$654.5 million. The three key contracts are for Lot 1: construction of Transmission (TL) from Dasu to Mansehra; Lot 2: TL from Mansehra to Islamabad Substation; and Lot 3: Mansehra Substation. US$700 million available in the IBRD loan will be fully utilized in Lots 1, 2, and 3; supervision consultant; and resettlement action and social development plans under the Transmission Component. Till January 15, 2024, IBRD Loan has disbursed US$103.1 million and has reserved US$245.2 million as Special Commitments to facilitate supply of equipment and parts for the three contracts. Slow procurement of the three contracts was the main reason for delay in implementation of the Transmission Component. The contracts were finally signed in December 2022. Lots 1 and 2 contracts are effective from Feb 10, 2023 with implementation period of 40 months. Lot 3 contract is effective from Feb 20, 2023 with implementation period of 30 months. The contractors are mobilized; design approvals are nearly complete, transmission line route has been finalized, the contractor has been handed over the site for Mansehra substation, and the contractors have placed orders for the key materials and parts. The progress of the overall the Project towards achieving the Project Development Objective is Satisfactory as the dam construction is underway with the target of commissioning the first power generation unit by FY27. The Bank is arranging more funds for the Hydropower Component, which is implemented by the Pakistan Water and Power Development Authority (WAPDA). If contract timelines for Lots 1 and 2 are met, the transmission line will be ready for power evacuation from the 2,160 megawatt hydropower plant under the Project. A longer extension is anticipated in future to complete the construction of the transmission line. The timing and period of extension will depend on the implementation progress. There are no overdue audit reports or outstanding observations. III. DETAILED CHANGES LOAN CLOSING DATE(S) The World Bank Dasu Hydropower Stage I Project (P121507) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-90760 Effective 31-May-2024 30-Jun-2025 30-Oct-2025 IDA-54970 Effective 30-Jun-2022 31-May-2024 IDA-54980 Effective 30-Jun-2022 31-May-2024