Contractors, machinery on site to initiate construction of Diamer-Bhasha dam

Minister for Water Resources Faisal Vawda on Wednesday said the contractors and machinery had reached Chilas city in Gilgit-Baltistan to formally begin construction work on Rs1.4 trillion Diamer-Basha dam.

Addressing a joint press conference here with Chinese Ambassador Yao Jing and Wapda Chairman Lt. General Muzammil Hussain (retired), the Minister said the project had the full support of the armed forces and Strategic Services Division and the government of China without which the project could not have reached this stage.

He criticised the previous governments for repeated ribbon cutting and photo-ops sessions on mega water projects for the last 20 years without actually making any progress while the PTI government had started physical work. He said it was second mega project started within a year as the Mohmand Dam was started about a year ago and construction work was now in full swing.

He said the Diamer-Basha dam would change the destiny of the country and no spoiler would be able to jeopardise the project. He said the project was being initiated at a time when nobody was ready to take such a huge project anywhere in the world. The project would generate about 16,500 jobs and reinvigorate cement, steel and transport sectors as about 1000 trucks would daily move on the roads to supply material to the dam site.

Chinese Ambassador Yao Jing said it was a historic day for the people and the government of Pakistan to move the project to construction phase after four decades of planning and designing exercise. He said it was a very significant project that would support the country's economy and greatly contribute to irrigation, environment and energy sector besides controlling national disasters.

He said the contractor - Power China - was the most experienced public sector company in this field and had to its credit the construction of Three Gorges Dam.

Wapda Chairman said the government of Pakistan does not have resources for the project with the total estimated cost of Rs1.407trillion. The dam cost was about Rs480 billion; about Rs97billion cost was for land acquisition and about Rs79billion on confidence building measures to secure support of the local population to be dislocated and given alternate residence and other facilities like roads, schools, hospitals and so on as per their desire. He said the cost of power generation facility was estimated at Rs751bn but that would be required at a later stage.

He was of the view that the government would meet about 30pc or Rs406bn share of the total project cost while remaining Rs997bn or 70pc would be arranged by Wapda through Rs100bn equity besides commercial financing and Eurobonds etc. He said all the three leading international rating agencies - Fitsch, Moody's and Standard & Poor's - had rated Wapda as a stable entity.

He said the Wapda had ensured fast track mobilisation of contractors and machinery had already reached Chilas. He said the key target was to ensure completion of all diversions within 2-3 years, followed by construction of dam and power facilities in about 5 years so that the project is commissioned by 2028 adding that it would be ensured that its completion was within approved costs.

Responding to a question, Wapda Chairman said India had committed a number of violations of the Indus Waters Treaty on western rivers and had been bent upon usurping Pakistan's water rights but those violations had nothing to do with this mega dam. He said Diamer-Basha dam area was very much part of Pakistan. "We are building dam within our territory. Their (Indian) objections being raised are irrelevant, frivolous and ridiculous," he stated.

He said project had remained stuck for decades due to various reasons which had been addressed and would be completed within stipulated deadline of 2028 to achieve its main purpose of water storage and producing 4500 MW of cheap and affordable electricity for meeting energy requirements of the country.