Curbs on workers, experts’ movement: Slowdown hits Dasu hydropower project work: World Bank

ISLAMABAD: The World Bank has observed that work on 4,320 MW Dasu Hydropower Project has considerably slowed down, due to restrictions on the ground-transportation of international workers and experts from Islamabad to Dasu and shortage of armored vehicles for their movement within the project areas.

A World Bank Mission was in Pakistan from September 2-13, 2024 for attestations of the facts of multi-billion-dollar project.

The Mission also held meetings with authorities of Water and Power Development Authority (WAPDA), and the National Transmission and Despatch Company (NTDC) for the support extended to the World Bank’s implementation support for Dasu Hydropower Stage I Project (DHP-I). DHP-I includes Dasu Hydropower Project (DHP) and Dasu Transmission Line (DTL).

World Bank approves $1bn financing for Dasu Hydropower Project

The World Bank’s Board of Executive Directors approved $1 billion as the second additional financing for DHP-I on June 10, 2024, with IDA credits 7563-PK, 7564-PK, and IBRD Loan 9680-PK. The Bank has requested EAD to complete the signing of the IDA credit and IBRD loan agreements at the earliest so that the Project’s financing costs are optimized by using the concessional Shorter Maturity Loan in IDA 7563-PK.

The construction of DHP and DTL are ongoing despite the security and logistics challenges. The Bank requested the government to take security measures to ensure the safety and security of the project personnel and to facilitate necessary movement of international workers and experts to improve the construction progress. The completion of DHP-I will reduce the average cost of generation in the country and relieve the financial pressure of Pakistanis due to the high electricity tariff.

“The terrorist attack of March 2024 was a major set-back resulting in temporary suspension of works by all the Chinese contractors and implementation of strict security measures by the government,” said Country Director Najy Binhassine.

The mission observed that works in DHP have considerably slowed down, due to restrictions on the ground-transportation of international workers and experts from Islamabad to Dasu and requirement of armored vehicles for their movement within the project areas.

The Mission maintained that in DHP the concreting of the integrated coffer dam is the next major milestone. It is likely to start in the low-flow season of 2025 (ie, August/September 2025) given the slower progress of works since March 2024 and delay in availability of power from the 132 kilovolt (kV) transmission line, which is still under construction. To achieve this milestone and complete the preparatory works in DHP, well-coordinated support from the federal, provincial, and local governments to the Project and WAPDA is necessary.

The key actions agreed for DHP are:

(i) several houses, where the affected people have been provided rightful SMR, are still not demolished. These houses must be demolished immediately, prioritizing cases in the footprint of relocated Karakoram Highway (KKH) and Right Bank Access Road-2.

The priority houses must be demolished by mid-October 2024. In parallel, SMR payments must be completed and concluded for the cases that are being reviewed by WAPDA and Deputy Commissioner’s (DC) office; and as soon as SMR are paid in these cases, the associated houses must be demolished;

(ii) local disputes and frequent interruptions of works are still impeding DHP’s construction progress, particularly in relocated KKH and 132 kV transmission line but also in the main works for the dam and powerhouse.

The mission appreciated the support from Commissioner Hazara in monitoring these disruptions in the project areas. The DC Dasu, District Police Office and WAPDA, need to ensure that contractors’ works are uninterrupted; and (iii) coordinated support from the federal government, Khyber Pakhtunkhwa provincial government, and the district administrations of Lower Kohistan, Kolai Pallas, and Upper Kohistan is necessary to stop further delays of the installation of this transmission line, which will supply power to the crushing and batching plants for concreting the integrated coffer dam and the main dam.

On 765kV Transmission Line (DTL), the mission stated that progress of DTL, Lot 1 - Transmission line from Dasu Switchyard to Mansehra Substation, Lot 2 - Transmission line from Mansehra Substation to Islamabad West Substation, and Lot 3 - Mansehra Substation, has improved.

The contractors have placed purchase orders for the key equipment for all three lots. The alignment of Lot 2 has been finalized.

The contract for Lot 4 - Islamabad West Substation has been effective since July 21, 2024, with 30-month duration. Lot - 4 contractor is at a start-up stage, and geotechnical investigations and system studies must be completed with priority. Timely decisions by the NTDC management are of upmost importance to improve the progress of DTL.

The key actions agreed for DTL are: (i) NTDC Board’s approval of the Memorandum of Understanding (MoU) between NTDC and district administrations is required to ensure that construction of towers in Lot 1 and Lot 2 proceeded without major land and social issues.

In coordination with the Commissioner Hazara, NTDC had agreed to sign the MoU by January 2024 to receive support from DCs’ offices and revenue officers for identifying landowners affected by the transmission lines and determining compensations for them.

Lot 1 Section 1 will pass through Upper Kohistan, Lower Kohistan, Kolai Pallas, and Shangla where land and revenue records are unclear; (ii) NTDC management and Board must approve a simple amendment to include occupational health and safety experts in the team of the supervision consultant without further delays.

The Bank provided no objection to this amendment on August 6, 2023; and (iii) NTDC and the contractors should form dispute resolution boards for all three contracts.

The progress of DTL and Islamabad West Substation must be monitored closely. Based on experience from the 132 kV transmission line, Lot 1 - Section 1 will be the most challenging from construction and social perspectives. The Power Division and NTDC management must ensure that sufficient resources and attention are given to DTL and that progress is keeping up with the ambitious timeline.

Copyright Business Recorder, 2024