Ministry of Water Resources has handed over the documents of Dasu Hydropower Project to National Accountability Bureau (NAB) due to financial implications associated with the land acquisition price having escalated by 1000 percent, sources close to Minister for Water Resources told Business Recorder.
Dasu Hydropower Project is run of the river project with total installed capacity of 4,320 MW (largest so far) comprising two phases - of 2,160MW each. The project is being constructed on the Indus river, 74 kilometres downstream of Bhasha Dam, in District Kohistan (Upper), KP. PC-1 envisages construction of stage-1 (2160 MW) which also includes land acquisition, resettlement of affectees, construction of offices, colonies, project access relocation of KKH( 64 km) as well as other construction activities.
The construction of stage-II of the project was planned after availability of water upon completion of Diamer-Bhasha Dam project. The project was planned to be completed in 2019 but the construction on main works could not begin till 2017 due to non-availability of land causing daily loss of Rs 335 million on account of commitment charges and generation loss, besides deprivation of other economic dividends.
The PC-1 of the project was approved by the ECNEC on March 28, 2014 at a total cost of Rs 486.093 billion through financing from the World Bank and Wapda's equity. The approved PC-1 included Rs 12.027 billion as an estimated cost for land acquisition (79,341 kanals including 5,240 kanals in Diamer district) which will dislocate 7,000 persons, 34 villages and 767 households.
However, land acquisition process could not be completed in the last five years due to various reasons including: (i) Kohistan district being unsettled district has no revenue record and preparations of record was a time consuming process; (ii) frequent transfer of Collectors and Revenue staff; (iii) deficiency of Revenue officials; (iv) insufficient provisions of requisite funds to the DC by Wapda; (v) deficiency of staff in line departments like Forests and C&W for carrying out survey; (vi) delay in verification of built up properties through Suparco and then GIS; (vii) legal complications in simultaneously carrying out acquisition of proceedings under the Act ibid in the presence of previous approval by the ECNEC of negotiated rates in 2015; and (viii) non-acceptance of land rates and its categorization by the owner as determined by the DC and snags developed on relocation/settlement of the displaced persons specially from Sigloo village, etc.
Following a lengthy process of negotiations and considerations of various proposals, the project was again submitted to CDWP/ ECNEC) at a revised cost of Rs 36.914 billion for land acquisition and built-up property, increasing the overall cost of Dasu Hydropower Project ( stage-1) to Rs 510.980 billion.
The ECNEC sought advice of Law and Justice Division in the matter which sent the following advice: "this Division is of the view that in this case, the process of land acquisition is being carried out through negotiations provided under section 11-A of the Act which is a separate process of land acquisition through private negotiations on the directions of government. This is controlled by the restrictions imposed in section 24 of the Act. Therefore, the proposal to increase approved cost of land at the negotiated rate along with payment of the compensation on account of development made after issuance of section 4 notification under Act, 1894, may be implemented upon approval of the government. But the process should be transparent as per applicable law and rules."
ECNEC approved the revised project proposal with the direction that Law and Justice Division's advice will be adhered to strictly in letter and spirit.
In compliance of the decision of the ECNEC of October 2, 2019 read with the advice of the Law and Justice Division, Water Resources Division submitted the following proposals for consideration of the Cabinet: (i) land acquisition through private negotiations conducted by the Deputy Commissioner, Kohistan and committee notified by the Board of Revenue KP under the chairmanship of the Commissioner Hazara Division; (ii) revision of approved cost of land at enhanced rates of 40 per cent through private negotiations for each category of land and compensation for all developments made in the land/ properties after imposition of section 4 of the Land Acquisition Act, 1894 as per report submitted by the committee headed by the Commissioner Hazara Division, KP, recommended by the PSC, CDWP and approved by the ECNEC at a total cost of Rs 36.914 billion; (iii) application of the revised/ enhanced land rates would be effective from the date of the decision of the Cabinet; ( iv) land rates and volume of compensation so approved by the Cabinet would be notified as an award by the District Collector, Kohistan to give it's a legal validity; (v) Wapda, in consultation with the consultant, would rationalize the requirement of land for permanent use and explore the option for acquiring lands required for temporary/ periodic use on rental/lease basis so as to reduce the cost of acquisition; and (vi) payment shall be made strictly through a transparent mechanism put in place by the Board of Revenue, KP and in accordance with applicable rules/policy in vogue.
During a discussion, the Minster for Water Resources informed the Cabinet that the details of the proposed actions have also been shared with NAB considering the considerable financial implications.
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