ISLAMABAD: The Water and Power Development Authority (Wapda) has asked the government to offer a part of the expected revenues of the hydropower projects to the contractors as incentive for speedy project construction.

The incentive would be initially offered to the contractors of 4,320MW Dasu Hydropower Project scheduled to be completed by end of 2019.

The proposal was formally floated by Wapda Chairman Zafar Mahmood at a briefing on eight major hydropower projects of $56.4 billion having total generation capacity of 28,420MW on the Indus Cascade. The briefing was given to Minister for Water and Power Khwaja Mohammad Asif.

The Wapda chief said the contract required the contractors to complete the project by end 2019 who should be given an incentive for early project implementation. If the project was completed six months ahead of schedule, it would provide additional revenue of about Rs55bn — a part of which could be shared with the contractors.

He said the delay in Dasu Hydropower project was estimated to cause Rs233 million per day loss to the nation worked out on the basis of Rs11 per unit that was currently being charged to lower middle income group consumers.

He said the contract for the project was expected to be signed by May 2015. He said partial funding for the project had been committed by the World Bank (WB) while the remaining would be arranged by the contractors against World Bank guarantees and the Govern­ment of Pakistan in the shape of land acquisition.

He said the WB wanted the government to complete first phase of Dasu Hydro­power having power generation capacity of 2,160MW and then move on to the Diamer Bhasha Dam and finally construct the second phase of Dasu Hydropower but Wapda was engaging with diplomatic missions in Islamabad and visiting capitals of major friendly countries to involve investors and contractors so that both phases of Dasu project could be started simultaneously to save on time.

The Wapda chairman said the desk studies for the country’s highest hydropower project at Skardu had been completed. This suggests the 120-metre dam with power project with a generation capacity of 1,200MW could be constructed in five years with $3bn investment.

Down on the cascade, Tangus Hydropower project with 127-metre dam height and 2,200MW generation capacity could also be developed in five years with an investment of $5bn. The project feasibility study has been completed and submitted for approval to the federal government.

Further down, Yubo Hyd­ro­­power project of 2,800MW capacity and 140-metre dam height could be completed in five years with $5.8bn. Its feasibility study was also awaiting approval by the federal government.

Another major project and having the generation capacity of all the existing hydropower projects put together was also expected to be taken up for construction in phases. The Bunji Hydropower of 7,100MW, just above the Diamer Bhasha Dam was expected to cost $13.5bn. The project design and tender documents have also been completed and could be offered for construction in very short time.

Besides Diamer-Bhasha of 4,500MW, Patan Hydro­power of 2,300MW has the estimated cost of $4.2bn and its feasibility study was expected to be completed by July 2015. About three kilometres downstream of Besham, a 4,000MW Thakot Hydropower Project could be completed in six months with $7bn.

Published in Dawn, December 11th, 2014