ISLAMABAD: The Ministry of Economic Affairs has expressed its serious concern on the slow implementation of 4,320MW Dasu Hydropower Project (DHP), as formal signing of agreement with additional financing worth $1 billion is pending due to failure to secure approval of the revised PC-1 by WAPDA, well informed sources told Business Recorder.
The main reason for considerable slowing of progress is due to restrictions on ground transportation of international workers and experts from Islamabad to Dasu and shortage of armoured vehicles for their movement within the project areas.
A World Bank Mission which also visited Pakistan from September 2-13, 2024 for attestation of the facts of multi-billion-dollar project conveyed dismay at the slow progress of the project.
Curbs on workers, experts’ movement: Slowdown hits Dasu hydropower project work: World Bank
The project is behind schedule and the planned commissioning by July-2027 is highly improbable. The tragic incident of the terror attack on Chinese workers led to suspension and slow resumption of project activities.
“There is delay in demolishing houses in the project area and restrictions in the movement of contractors and consultant staff. Use of armoured vehicles also makes it difficult to manoeuvre through project area,” the sources added.
The World Bank’s Board of Executive Directors had 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 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 setback resulting in temporary suspension of works by all the Chinese contractors and implementation of strict security measures by the government,” said Country Director Najy Benhassine at a recent meeting.
The mission observed that works at the DHP have considerably slowed down, due to restrictions on ground transportation of international workers and experts from Islamabad to Dasu and requirement of armoured vehicles for their movement within the project areas.
The Mission maintained that the 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 (i.e., August/ September 2025) given the slower progress of works since March 2024 and delay in availability of power from the 132kilovolt (kV) transmission line, which is still under construction. To achieve this milestone and complete the preparatory works in the 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, prioritising cases in the footprint of relocated Karakoram Highway (KKH) and Right Bank Access Road-2.
The priority houses to be demolished by mid-October 2024 are still not demolished. 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 the 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.
Copyright Business Recorder, 2024
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