Hydropower generation support programme - Phase 1: Rehabilitation of the Warsak HPP

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The module includes the rehabilitation and modernization of the Warsak hydroelectric power plant (HP) on the Kabul River, about 20 km west of the city of Peshawar in the former FATA region (Tribal Territories). The measure is intended to secure the HPP's long-term electricity generation capacity of at least 200 MW. In addition, accompanying measures to increase acceptance among the local population and to protect against flooding and manage sediment are being carried out at the HPP. The module's goal is to guarantee the HPP's economically efficient, environmentally and climate-friendly electricity generation for at least another 25 years. Over this period, an annual amount of electricity of at least 1,100 GWh is to be produced and fed into Pakistan's national electricity grid. The target group of the project are electricity consumers connected to the Pakistani interconnected grid. The module is also intended to make a contribution to economic and social development as well as to the political stability of Pakistan and to environmental and climate protection (DC program objective). The project sponsor is the state-owned utility company Pakistan Water and Power Development Authority (WAPDA), which has been operating the hydroelectric power plant since 1960. The total cost of the project is estimated at around EUR 146 million. Financing is provided by a FC budget loan of EUR 40 million. The Agence Française de Développement (AFD) (EUR 40 million) and the European Investment Bank (EIB) (EUR 50 million) are also co-financing the project as part of the European Mutual Reliance Initiative (MRI). The European Commission is also providing a grant of EUR 4.5 million for accompanying technical measures through the Asian Investment Facility (AIF). The remaining share of the costs, as well as possible cost increases and running costs, will be borne by the Pakistani side as a contribution.