• Tuesday, August 4, 2020

Diamer-Bhasha dam wins approval

Discussion in 'Infrastructure & Development' started by ghazi52, Mar 21, 2018.

  1. ghazi52

    ghazi52 PDF THINK TANK: ANALYST

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    After much delay Diamer-Bhasha dam wins approval


    ISLAMABAD: Pakistan on Monday approved the construction of Diamer-Basha Dam at an initial estimated cost of Rs625 billion. It will mostly be funded through local resources after international financial institutions and China showed reluctance to help the country build the reservoir.

    The Central Development Working Party (CDWP) cleared the project for the final approval of Executive Committee of National Economic Council (ECNEC), according to the Ministry of Planning and Development. Headed by Planning Commission Deputy Chairman Sartaj Aziz, the CDWP also cleared the Rs303 billion Mohmand Dam Hydropower Project for the final approval of the ECNEC.

    With a cumulative cost of Rs928 billion, these projects will help the country address two serious issues – water shortage and power generation. The Mohmand Dam project will have power generation capacity of 800 megawatts. Diamer-Basha Dam project is only being built as a water reservoir for now, as the government initially excluded the power generation component, which would cost another Rs744 billion.

    The total cumulative cost of Diamer-Basha Dam will be minimum Rs1.4 trillion once power generation facilities are accounted for.

    This is very big decision and the government will fund the dam by providing money from the budget, while the Water and Power Development Authority will arrange commercial financing, Aziz told The Express Tribune. He said that under the new Water Policy, the Planning Commission has recommended enhancing the water sector allocations and the funds required for the construction of the dam can easily be provided.

    The government will be required to provide around Rs48 billion per annum for the construction of the dam.

    The federal government will provide Rs370.2 billion from the budget in a grant, which will cover 57% of the cost. Wapda will raise Rs115.9 billion from its own sources as an equity investment, and the authorities will borrow Rs163.3 billion in commercial loans, according to the project document.

    In past 17 years, almost every head of state and the government has performed the groundbreaking ceremony of the project but civil work could not begin due to lack of financial resources.

    Out of the total Rs625 billion total cost, which includes interest during construction, the local rupee component is Rs472 billion and Rs153.2 billion is the foreign exchange component to be arranged from abroad. The project will be completed in five years.

    An amount of Rs138 billion has been separately approved for land acquisition and resettlement. Most of this work has already been done and the government has spent Rs58.3 billion on land acquisition. An amount of Rs53.5 billion has additionally been approved for resettlement.

    An amount of Rs269 billion has been approved for civil works. The Karakorum Highway (KKH) relocation will cost Rs56.9 billion.

    The Council of Common Interests –the highest constitutional body dealing with Centre and provinces issues, unanimously approved the Diamer-Basha Dam project in July 2010.

    The project has been divided into two parts to reduce the size of the project and financing requirements after World Bank, Asian Development Bank and China refused to fund the project. Pakistan has been struggling to raise money from international institutions amid Indian opposition to the project.

    Pakistan had withdrawn its request to include the Rs1.4 trillion Diamer-Bhasha Dam in the China-Pakistan Economic Corridor (CPEC) framework after Beijing placed strict conditions including ownership of the project, according to Wapda Chairman Muzammil Hussain on Tuesday. “Chinese conditions for financing Diamer-Bhasha Dam were not doable and against our interests,” said Hussain while briefing the Public Accounts Committee (PAC) in November.

    In order to facilitate early implementation of the project, WAPDA has been entrusted to have overall control and implementation responsibility of the project. The WAPDA will be responsible for dam construction and the National Highway Authority has been tasked to relocate parts of the Karakoram Highway that will submerge in the water.

    The project will contribute to the alleviation of acute water shortages in the Indus Basin Irrigation System caused by progressive siltation of existing reserves. After the completion of the dam, the storage capability of Pakistan will increase from 30 days to 48 days.

    The powerhouse, when completed, is expected to add 4,500 megawatts of electricity generation capacity.

    Pakistan has not built any major water reservoir since Tarbela Dam and Mangla Dam were built in the 1960s.
     
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  2. ghazi52

    ghazi52 PDF THINK TANK: ANALYST

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  3. My-Analogous

    My-Analogous SENIOR MEMBER

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    Good start
     
  4. ghazi52

    ghazi52 PDF THINK TANK: ANALYST

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  5. AbuzarIlyas

    AbuzarIlyas FULL MEMBER

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    Step by Step, we can build dozens of small and large dams in these mountains for power generation and water storage. Though, its water storage capacity is low as compared to Tarbela and Mangla but we can support it with Dasu and Bunji dams and can build a canal system to divert water in Ravi and other small rivers to recharge the underground water reservoirs.

    Our Earth is thirsty, we need to build all of these proposed large dams even if we have to divert our 10% defense, education and health budget for them yearly. This should be done on war footings with double speed and all projects should be initiated at a time.
     
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  6. Clutch

    Clutch ELITE MEMBER

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    No $$$$ for this huge project... :(

    They keep "approving" this every year...

    They keep having "groundbreaking ceremonies" year...

    They keep promising pipe dreams every year... We lap it up like gullible sheep...

    Just build it... Stop taking.
     
    Last edited: Mar 21, 2018
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  7. ziaulislam

    ziaulislam ELITE MEMBER

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    such shame we wasted a decade because incompetent govt couldnt simply cough up 48 billion in PSDP of 500+billion rupees..such shame and criminal negligence by PMLN and PPPP govts

    just a poltical ploy...wont happen i said this 4 years ago and will say it again
    next govt will decide..we will have to wait whose govt it is
     
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  8. ghazi52

    ghazi52 PDF THINK TANK: ANALYST

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  9. ziaulislam

    ziaulislam ELITE MEMBER

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    48 billion ruppes is nothing, its not about money its about govt will to do it, its not even 5% of PSDP!(over 1000 billion this year)

    countries with far less financing have built far larger dams..i say even if it was 200 billion rupees a year it was manageble
     
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  10. Clutch

    Clutch ELITE MEMBER

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    I think it's a lot more than 48 Billion rupees...



    upload_2018-3-20_18-14-35.jpeg

    Construction & Financial Matters. In November 2008, the cost of the Diamer-Bhasha dam was estimated at $12.6 billion. and it will have a storage capacity of 8,100,000 acre feet (10.0 km3). However, it will have a power generation capacity of 4,500 megawatts.
     
  11. ziaulislam

    ziaulislam ELITE MEMBER

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    nope its 48 billion rupees a year..usually a project life time for 8 years means around 400 billion rupees
    rest of money is gathered through loans, WAPDA own money, supplier credit(buying machinery/turbines), and commercial loans to cover the total cost of around 10-11 billion dollars, the cost of 12.6 IS NOT THE BASE COST BUT COST calculated on base of loans..the cost goes down the more you use govt grants

    the plan was originally sent by WAPDA in 2010 after world bank with drew, but was put in shelf till govt tenure expired so it can just get a poltical victory/claim, the same way he claims all the motorways and even gawadar port ect
     
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  12. Syed1.

    Syed1. SENIOR MEMBER

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    They have been doing "approval" or "ground-breaking" of this project since Musharaf era. Every year billions of rupees are allocated for it but not a single brick is laid on the ground. Kafi log ne buhat maal bunaya hoga ab tak.
     
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  13. ghazi52

    ghazi52 PDF THINK TANK: ANALYST

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    The total cumulative cost of Diamer-Basha Dam will be minimum Rs 1.4 trillion once power generation facilities are accounted for.
     
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  14. Kabira

    Kabira ELITE MEMBER

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    Let's see if government allocate Rs48b for Bhasha dam for next fiscal year. Once construction start then successive governments will not have any other option. The reason I said successive governments because I expect this project to take 20 years to complete once work start. Unless its high on list of priority projects.
     
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  15. ghazi52

    ghazi52 PDF THINK TANK: ANALYST

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    Last edited: Sep 12, 2018
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