The Water and Power Development Authority (Wapda) is reportedly not actively pursuing the multibillion-dollar Diamer-Bhasha dam, as formal approval by the National Assembly or CCI is still pending.
Sources in the Ministry of Water and Power told Business Recorder that Asian Development Bank's (ABD) condition for its support was project's approval by Cabinet, National Assembly or the Council of Common Interest (CCI), sources in the Ministry of Water and Power exclusively told Business Recorder.
No work on feasibility/actual construction of transmission system has been initiated, according to reports. Pre-qualification, evaluation, and appointment of supervision consultants/contractors is still pending. Recently, the Executive Committee of the National Economic Council (Ecnec) decided to revise PC-1 of the project with the objective of extending additional financial benefits to the affectees, including out of court settlement of Harpin Das lands.
"Land acquisition package, renegotiated with the help of local administration, is lying with the federal government for go-ahead signal," sources said. They said that land acquisition by Northern Areas Authority is pending despite allocation of one billion rupees under this head.
According to sources, any further construction has been banned in the earmarked land, but no compensation has been made to the affected people, due to which, in April 2008, civil disturbances took place in that area, and, in consequence of negotiations with the Gilgit-Baltistan Administration, the affectees came up with certain demands.
"Project's offices in Chilas were burnt/broken by the local population. Entry in the project area is restricted and is impossible without a police escort. Project office has been shifted to Hattian temporarily," source added. While negotiations at the local level continued, the Executive Committee of National Economic Council (Ecnec) approved PC-1 of Rs 60 billion in November 2008. An amount of Rs 26.44 billion was earmarked for land compensation. However, after protracted negotiations between the Gilgit-Baltistan Administration and the committee of the affectees, an agreement was reached in August 2009 on the cost of different types of land/properties to be acquired. However, Wapda did not agree and stated that these were much higher than in the approved PC-1.
Basha is the key project in a series of hydropower projects to be developed in future in the upper reaches of Indus river, which include Bunji, Dasu, Thakot and Patan.
According to sources, since the problem in land acquisition was affecting the planned execution of Diamer-Basha Dam, Prime Minister constituted a ministerial committee to resolve the issue. The committee has held three meetings. In order to take the elected government of Gilgit-Baltistan into confidence, the committee invited the Chief Minister of Gilgit-Baltistan to its meetings. In its second meeting a subcommittee under the chairmanship of Chief Minister of Gilgit-Baltistan, with Secretary, Kashmir Affairs and Gilgit-Baltistan Division, Secretary, Water and Power Division and Chief Secretary of Gilgit-Baltistan was constituted to discuss the issue of appropriate compensation with the affectees.
The subcommittee held intensive discussions with the affectees and reached an agreement. Subsequently, the ministerial committee, after thorough discussion on the report of the subcommittee noted that: (i) the basic issue of exorbitant rates demanded by the affectees was resolved and the rates were substantively decreased; (ii) out-of-court settlement of Harpin Das lands; (iii) total cost on account of land acquisition was pitched at Rs 40.70 billion; (iv) site(s) would be handed over to Wapda on payment of compensation of these lands, while for the rest of the lands compensation will be made within a period of three years; (v) Wapda agreed to increase the size of residential plots in model villages; (vi) Wapda also committed to offer employment for non-technical positions to the locals of Diamer district, while no compromise on merit in case of technical positions will be allowed; (vii) a Dispute Resolution Committee (DRC) comprising all stakeholders would be constituted to resolve day to day problems; and (viii) the agreement on compensation would be notified as an award by the District Collector, Diamer, to give it legal validity.