Dasu hydropower project: Wapda inks Rs52.5bn contract with Chinese firm

Water and Power Development Authority (Wapda) Monday signed a contract worth Rs52.5 billion as a joint venture of GE Hydro China and Power China Zhongnan Engineering Corporation for electro-mechanical works of Dasu Hydropower Project (stage-I).

The electrical & mechanical (E&M) contract includes design, supply and installation of six francis turbines, generators, main transformers, generator and station service switchgear along with related equipment. This will lead to final completion of major works of the project.

Dasu Hydropower Project General Manager/Project Director Anwar ul Haque and GE Deputy General Manager - the authorized representative of GE-PC JV - Aijun Xu signed the contract on behalf of their respective organizations.

Federal Secretary Water Resources Muhammad Ashraf and Wapda Chairman Lt Gen Muzzammil Hussain (Retd) and French Ambassador, Chinese and the US diplomats, also attended the event.

Wapda Chairman Lt Gen Muzzammil Hussain (Retd), in his welcoming remarks, said that today is an important day for Dasu hydropower project. The project is of vital importance to add a major quantum of hydel electricity to the national grid in order to minimize reliance on expensive thermal generation and lower the power tariff, he further said.

Chairman Wapda stated that this project should have been started a few years ago as it provides cheap energy that Pakistan needs. This is a very critical project for Diamer Bhasha and downstream Dasu like Tarbela, Ghazi Brotha and Jinnah.

Ministry of Water Resources and World Bank extended full cooperation with respect to land acquisition he further said adding that this issue now stands resolved.

According to Chairman Wapda, initially the project was to have been completed in February 2023, but was delayed for three years; he expressed the hope that now it will be completed within the timeline and expectations.

Talking to media, he stated Pakistan has two issues, ie, shortage of energy and expensive energy however the first claim is contrary to the on ground situation as sufficient energy is available in the country.

Addressing the ceremony, Water Resources Federal Secretary Muhammad Ashraf said that the ministry was committed to optimal utilization of hydropower resources for generating low-cost and environment-friendly electricity to meet the energy requirements of the country for economic stability and social development. Dasu hydropower project, he said, is a manifestation of this commitment.

He appreciated Wapda Chairman for transforming Wapda into a pro-active and dynamic organization, adding that Wapda has been steadfastly moving to harness water and hydropower resources in Pakistan.

World Bank Country Director Illango Patchamuthu appreciated the efforts of Wapda to work on Dasu and urged to achieve safety of work force, hoping that incidents at the project site will decrease or remain at the same level. He said there have been delays and project construction and E&M work can be accelerated to provide cheaper green energy for Pakistan.

"Last week, we heard from the Prime Minister, Power Minister and Special Assistant to Prime Minister about 30 percent of renewable energy by 2030 without hydel. Nadeem Babar also stated that total share of energy mix from hydel, solar and wind will be 60 per cent by 2030," he said, adding that this will reduce the share of costly thermal power and costly import of fuel. He urged contractors and Wapda to pay attention to safety and health issues as the last terrain was tough and accidents occurred. However, due to latest technology and lots of ways with which safety can be ensured, he prayed that the number of accidents be reduced at Dasu or at least stabilized.

French Ambassador Marc Barety while addressing the ceremony said that France has been contributing to Pakistan's hydel power since long. He added that GE France is providing turbines for the project.

"I think this is excellent example of international cooperation which is witnessed from the presence of World Bank, China Hydro and GE France," he added.

French ambassador stated that international community and Pakistan wants clean energy and that's what Dasu Hydropower is going to do. This will also help to deal with continuously increasing temperatures. He also claimed that transmission and distribution system is weak.

The 4320 MW-Dasu hydropower project is being constructed by Wapda on River Indus upstream of Dasu Town in Kohistan District of Khyber Pakhtunkhwa. The project will be completed in two stages - each stage having a generation capacity of 2,160 MW. At present, stage-I of the project is underway, while electricity generation from the project is expected to commence in 2024-25. Stage-I will contribute more than 12 billion units per annum to the National Grid. The stage-II will also provide another 9 billion units to the system every year.

The World Bank is partially providing funds for construction of the stage-I of Dasu hydropower project to the tune of $ 588.4 million and Partial Credit Guarantee (PCG) of $ 460 million. The remaining funds are being arranged by Wapda from its own resources and with the sovereign guarantee of government of Pakistan.