WB wants Bhasha dam delayed

From the Newspaper | | 11th August, 2012
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View of a Senate session underway. – File photo by APP

View of a Senate session underway. – File photo by APP

ISLAMABAD, Aug 10: The World Bank has reportedly offered funding to induce Pakistan to take up the Dasu power project in Khyber Pakhtunkhwa and delay for 10 years the strategically more important Diamer-Bhasha dam in Gilgit-Baltistan.

That appeared to be the crux of the proceedings of Senate Standing Committee on Water and Power here on Friday, even though top bureaucrats tried to satisfy the committee that Pakistan’s sovereign decision on the matter maintained focus on the multipurpose Diamer-Bhasha project.

The World Bank has so far been reluctant to commit funds for the $12 billion Diamer-Bhasha project apparently because of behind-the-scenes opposition from India. The project promises 4,500MW of cheap electricity and 8.5 million acre feet (MAF) of water.

Senator Zahid Khan of Awami National Party who presided over the meeting provided the information about the WB offer and seemed inclined to support it apparently because it promised royalty on power generation and water use charges for Khyber Pakhtunkhwa unlike Diamer-Bhasha which required sharing revenues with Gilgit-Baltistan.

He said the World Bank had offered funding for 4,320MW run-of-the-river Dasu hydropower project instead of Diamer-Bhasha which would be delayed for 10 years. He said that according to his information “the bank is ready to extend funding for the Dasu project instead of Diamer Bhasha dam”.

“Government’s priority is Bhasha dam, and not Dasu project, and the World Bank is not responsible for making policies in Pakistan. We have made it clear to all donors that Pakistan will not give preference to Dasu over Bhasha,” retorted Wapda chairman Shakil Durrani who also belongs to Khyber Pakhtunkhwa and is close to the Khans of Charsadda.

The site of the Dasu hydropower project is 7km upstream of Dasu village on the Indus and 74km downstream of Diamer-Basha dam. It is located in Kohistan district of Khyber Pakhtunkhwa.

Senator Zahid, who had specially invited officials of the economic affairs division for a briefing on the funding issue, asked if Bhasha was getting delayed why the government was not starting work on Dasu which was equally important.

The Wapda chairman said that Dasu was a run-of-the-river project while Bhasha dam would offer water storage which was a bigger challenge for the country.

He said Tarbela dam’s storage capacity was diminishing with 5,000 tons of silt filling its reservoir daily. “If Wapda starts work on the Dasu project, Diamer-Bhasha dam will be delayed for 10 years as we can construct one dam at any given time,” he said.

In the ensuing heated debate, Water and Power Secretary Zafar Mahmood tried to pacify both sides by saying that with adequate funding there should be no problem in undertaking both projects.

The committee decided to get a briefing on the prospects of funding from the economic affairs division at the next meeting.

The meeting was informed that the cost of 969MW Neelum-Jhelum hydroelectric project had increased from Rs130 billion in 2007 to Rs275 billion in 2012. The project was estimated to provide a guaranteed annual revenue of Rs45 billion to the government after its completion in 2016, project director Lt-Gen (retd) Mohammad Zubair said. At present prices, he added, the generation cost would be less than two rupees per unit after paying back interest.

He said a refusal by Norconsult of Norway to work in Pakistan had led to mobilisation of new consultant NJC – a joint venture led by MWH of the United States – on Aug 1, 2008. It completed review of earlier basic design made by Norconsult in 1998 which was not developed in detail.

Lt-Gen Zubair said review and modification of the project’s design after the 2005 earthquake had led to the increase in cost. In case of an earthquake of 7.6 magnitude one part of the project would remain safe, he said, adding that Rs24.843 billion had been spent on the project up to June 30 this year.

Answering a question, he said Wapda faced Rs90 billion funding shortfall which was now being bridged through a surcharge of 10 paisa per unit, Sukuk bonds and other measures.

Lt-Gen Zubair said redesigning of the project after the 2005 earthquake, two to three years delay in arranging land by the AJK government and six to eight months delay due to 2010 floods were key reasons for late start of the project.

He informed the committee that Exim Bank of China would soon approve $448 million for the Neelum-Jhelum project and in case of a delay Wapda would face funding problems. Abu Dhabi had promised $100 million for the project but it was not interested anymore, he said, adding that he would not disclose the reasons because these were beyond his purview.

Shakil Durrani said Norconsult had not conducted a detailed geological survey, adding that no international consultant was ready to work on the Neelum-Jhelum project because of its close proximity with the Line of Control.

He said Wapda had changed construction methodology from drill and blast to tunnel boring machine (TBM) because progress was slow and behind schedule. He said TBM had faster excavation rate of up to 16 metres a day, implying that the tunnels would be completed in 30 months which would lead to completion of the project in 2016 instead of 2018.

Responding to a question about excessive use of Chinese machinery despite its inferior quality, the Wapda chairman said it was not possible for the authority to buy equipment from other countries with funding from China. “How can we set our conditions when we are borrowing money from other countries? If China gives funding we are bound to buy Chinese equipment,” he added.

COMMENTS

  1. According to Dawn editorial once it said it will cost $ 8 billion and it will generate 4,500 M'w of electricity. If that is the output and so much the cost it is not worth it. Scrap it. The location of the dam is such that you cannot have a network of canals from it.

    It is much better to go tor a new technology Solar Electrical Generations. I can give you 5,000 MW of electricity at a mere 475 million dollars not 8 billion we are going to invest for 4,500 MW. All it needs is 31,000 acres of waste land any where in Baluchistan or Sindh or any where.

    Think differently and explore avenues. We are doing something that ought to have been done 30 years back, when the cost was low not now. There is no sense in it. Go Solar.

  2. We should prefer the dam which will ready at earliest for power generation.

  3. good news, that means we will have more time to rescue/shift the precious rock carvings which will otherwise end up under water. :-)

  4. its good to see that such information is to be made public that how matters are going on … Pakistani people should know these ground realities that how Mega key projects of any country are dependent on foreign community involvement .

  5. Bhasha dam has the ability to more or less end power cuts, therefore we should build it regardless of foreign interference. The WB may not want to help fund it, but there are always other avenues to fund it.

  6. india has to go with the decisons favouring its people, not always in the intrest of pakistan. There is no big deal in it., after all every country has the right to do things in the best intrest of its people unlike pakistan, where things are done the other way around!

  7. Yes I agree provided India could have honored same principle while constructing Baghliar Dam.

  8. Sell bonds to expatriate Pakistanis. Self finance Diamer-Bhasha Dam. Let us all resolve to volunteer money and muscle. Build this Dam to end power shortages!

  9. if we really bound to buy Chinese machinery then why dont we set some standards for these equipments, which China should follow.

  10. Pakistani people are living in primitive ages without electricity and you are concerned about ecology? US, China, Russia have all exploited ecology and now they want others to follow the greener principles now?

  11. Pakistan is always dependent on other countries for its survival.Such a shame

  12. cant delay the bhasha dam any more enough time already passed National interest and long term development requires immediate starting and function of Bhasha dam

  13. Did Pakistan oppose India's more than 300 hydel projects on upper jhelum and chenab? why then India has the obsession to take everything away from Pakistan? You neither want to live peacefully nor let us thrive.

    • They did not ask for any funding or help from any one to build their 300 hydel projects. You can do the same.

    • Pakistan should have objected and made a huge hue and cry. We don't. We are lazy. Our media and diplomats dont do their job. We are too busy killing each other or pursuing vendetta and hate politics, how can we have time to do the more important things.

      India cares for herself and her image abroad, however much people may be suffering at home. Their investment is on self reliance and glory outwardly. People are used to such bad conditions they don't care and don't complain so long as they see the country is going to the moon.

  14. Bhasa Dam Idea was initiated by President Musharaf then in 2006 to be started in the following 5-10 years

  15. leave world bank aside. go ahead with basha dam.you can ask money from big people of pakistan even on loan . do not let india oppose. we can live at the mercy of india. do not bow. PLAN TO make both BASH DAM and OTHER ONE ALSO.

  16. sad to see WB taking india side….biased institution

  17. For Pakistani nation, we should be matured enough to decide what is good for our nation and once decided work on its achievement, resources will be there if the entire nation wants to do it.
    Our politicians should come up to the occasion and convince the donor/lending agencies to support our projects which are good for us.
    Had the Kala Bagh dam been built when idea conceived today we would have been rid of the power and water problems and if any politician out of any reason is opposing it should be convinced by discussions for the benefits coming out of it for the nation on the whole.
    If financial and economic policies are framed in such way that people who are keeping their resources outside are convinced to bring it back you would not need running after lendors.

  18. Sure, its disputed territory for everyone else but India.

  19. Pakistan should go ahead without WB.

  20. India opposes …is that even news worthy ? They are our enemies after-all !!

  21. game of royalty.

  22. Who said Chinese dam engineering is inferior?? Watch Three Gorges Dam on Youtube! It is fully operational and one of the largest hydroelectric project ever built which capable of producing 45000 MW of hydro electricity. On the other note that is equivalent to 3 times electrical energy consumed by Pakistan… Pakistan should definitely financed Basha Dam with the help of China and use their engineering model.

  23. Mahabharata you mean…!….w0nderful….

  24. Why India is opposing behind the scene ? India should oppose it by tooth and nail as it is a disputed territory

    • Anil – I request that you refrain from interfering in Pakistani affair, thanks.

    • There is no dispute. Its Indian territory. New york would not become disputed territory, if tomorrow pakistan starts claiming.

    • The whole of Kashmir is disputed territory, still India paid for the construction of Mangla dam, as part of IBWT.
      better educate yourself

    • disputed territory is where india is sitting. The area in discussion is part of Pakistan. I guess years of misguided information & propaganda has rendered you unable to judge the facts correctly.

    • yeah? convince indian gov. on indian media for better results….and dont forget mentioning kashmir region…

    • India always try to oppose any program that is beneficial to Pakistan. SHAME to india.

    • disputed not by Kashmiris, but by Indians not even living in Kashmir. The reality is they cannot stop us.

    • Mr Anil there is no need of breaking your tooth with the nail. This is being constructed in our own territory. Gilgit – Baltistan is in Pakistan not in India. India's behind the seen campaign is as always,a jealous attitude to create obstacles and hurdles in any opportunity of Pakistan's economic growth. It is high time that India having literacy rate much higher than others should stop thinking with a narrow mind.

    • since when did gilgit and baltistan became a disputed territory ?

    • I suppose you are also going to try and take the land away from us, worried that we may end up getting cheap electricity from a land that you have a dispute with us for. All the while about 900 million of your own country men are chronically malnourished because they are not able to fill their stomachs with enough food.

      Put your own house in order before you give into expansionist dreams, and let us also improve our lot.

    • Go read your own newspapers if you don't have anything good to say. Don't come here for spreading hatred

  25. "Now or Never; Are We to Live or Perish Forever”

    These are moments of truth for nations.

    This reminds me of "Now or Never; Are We to Live or Perish Forever” slogan given by Chaudry Ramat Ali on the movement of Pakistan.

    Pakistan must make bold strategic moves.