The Implementation Committee of Diamer Bhasha and Mohmand Dams (ICDBMD) constituted by the Supreme Court of Pakistan Thursday identified causes for the delay in construction of both key dams, including funding issues. The cost of both projects has been estimated at $ 17 billion.
Presided over by Chairman Water and Power Development Authority (Wapda) Lieutenant General Muzammil Hussain (retired) the meeting which was attended by its 34 participants including former Wapda Chairmen observed that there are a number of hurdles in the projects starting from administrative issues to initial foreign funding from $ 1.5 to $ 2 billion. Joint Secretary, Ministry of Water Resources Syed Mehar Ali Shah who is Secretary of the committee commended Chief Justice of Pakistan for taking this historic initiative. Pak Armed forces, employees of banks, ministries and different organisations have deposited millions of rupees in the specified accounts. This process is ongoing and overseas Pakistanis have also shown an interest in depositing their donations in these accounts.
After the meeting, Chairman Wapda informed media that Wapda had constructed two major dams just 18 years after Pakistan came into existence but after 1976 the pace on such projects slowed.
He maintained that in Pakistan water situation is extremely disturbing, adding that presently available water is less than 1 MAF. "Today 6.7 MAF water should have been in Pakistani dams however there is just 1 MAF in our dams. The situation is dire and needs to be dealt with immediately," he added.
Chairman Wapda said that it is his effort to commence work on both projects within a year and complete the two as early as possible. He said fifty percent funds for Diamer Basha dam will be provided by the federal government.
The committee identified that PPRA rules are also hurdles in mega hydropower projects. The committee will submit its recommendations on July 20, 2018 on the ways and means to resolve all outstanding issues. The committee also deliberated on possibilities of alteration in financial model of the two projects.
Chairman Wapda, who claims that concerns of Sindh on Kalabagh dam are legitimate, said that the Chief Justice of Pakistan's decision to constitute an implementation committee is very important.
Wapda would get fifty percent of total financing from PSDP, ie, Rs 232 billion whereas Rs 98 billion will be arranged by Wapda from its own resources.
"The committee has decided to remove hurdles which are delaying both projects," he said adding that it has been decided to divide Basha dam in two parts i.e. dam part and generation part. Basha dam will be completed in nine years whereas Mohmand dam is expected to be constructed in five years.
In reply to a question he said that governments of KPK and Gilgit Baltistan are extending assistance to Wapda on both projects. Pak Army has also provided commandoes who are helping local law and order forces.
According to sources, land acquisition for Diamer Basha will be completed with public and government funding whereas international financing will be required for the dam part. One of the committee members opposed Cash Development Loan (CDL) for land acquisition. Such loans can be availed for the earning component of the projects.
"Presently immediate funding is required for land acquisition. Donation from public will be used for dam construction," the sources added. China which is Pakistan's all weather friend has refused to finance $14 billion Diamer-Basha Dam power project due to trans-boundary dispute between Pakistan and India, citing the stance already taken by the World Bank and Asian Development Bank (ADB),
Previously Chairman Wapda had accused international donors of exploiting Pakistan and not supporting hydel projects and expressed anger at ADB for Pakistan waiting for ten years on the promise of funding for Diamer Basha Dam. The project has been inaugurated 5-6 times but construction work has yet to start.
The cost of the project is $14 billion of which $3 billion is for Interest During Construction (IDC); and if the financing requirements of the dam and power house are separated, $7 billion funding is required for the dam. The construction period of dam is seven years which implies that Wapda requires Rs 100 billion per annum.
The meeting was attended by Chairman Wapda/ICDBMD, Additional Secretary (Budget), Finance Division, Joint Secretary (Water), Ministry of Water Resources, Joint Secretary, PM Office, Senior Chief (Water), Planning Division, Chef Secretary Gilgit-Baltistan, Senior Member Board of Revenue, KP, Additional Chief Secretary (Development), KP.
List of co-opted Members is as follows : Engr Shams ul Mulk, ex-Chairman, Wapda, Zafar Mehmood, ex-Chairman, Wapda, Additional Secretary (External Finance), Ministry of Finance, Advisor (Development Budget), Ministry of Planning, Joint Secretary, Ministry of Interior, Joint Secretary, Ministry of Information, Representatives of Nepra, Representatives of NHA, Engr. Nasir Hanif (Advisor Projects) Wapda, Engr. Muhammad Zareen, CEO, NJHPC, Commissioner/DC Chilas, Commissioner Hazara Division, Deputy Commissioner, Mohmand District, Brigadier, 11-Corps/ FC-KPK, Brigadier, 10-Corps/ FCNA, Saad Rasool, Advocate, GM Land & Resettlement WAPDA, General Manager Finance (Power), Riaz Ali Shah, Advisor, General Manager (Diamer-Basha), General Manager (Hydro) Planning, and Chief Engineer (C&M) Water.
According to an official statement, Chairman expressed the hope that all the Members will play their due role in timely implementation of Diamer Basha and Mohmand Dams, which will enable the country of storing 9.3 million acre feet (MAF) of water and generating 5300 mega watt (MW) of low-cost and environment-friendly hydel electricity.
The committee discussed in detail the ways and means to effectively overseeing the two projects. The meeting decided to constitute five sub committees namely Land Acquisition and Resettlement Committee, Finance Committee, Procurement Committee, Security Committee and Coordination Committee; one each for Diamer Basha and Mohmand Dams. It was also decided that the Sub Committees will make their presentations on July 20. The Sub Committees will also finalise and submit their reports on July 23 relating to the issues and the ways to resolve them. Subsequently, the progress report will be submitted to the Supreme Court on July 24 in line with directions of the court.
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