ADB refuses to fund mega dam project

[Muhammad Omar]

^^
It's not official yet, Chinese still have to accept the offer to include them in CPEC.

The headline says TO BE

and Negotiations are underway

 

[Clutch]

News August 19 2016 (in other news Even Dasu Dam Will be Included in CPEC and Chinese will build it)

Bhasha Dam project to be included in CPEC framework

Minister for Planning, Development and Reform, Prof. Ahsan Iqbal Friday said Diamir Bhasha Dam project would be included in China Pakistan Economic Corridor (CPEC).

“Negotiations for including the project in the CPEC framework have already been started with China,” he said while talking to media at Parliament House.

The minister said that Pakistan required $14 billion for Diamir Bhasha dam and $7 billion were needed initially to continue the project, which would be pivotal to secure the economic future of the country.

The country requires unity in current prevailing situation, at a time when operation Zarb-e-Azb was in final and successful stage while mega project CPEC was in pipeline.

He said that Pakistan’s Army special division including the all security agencies of the country were working on the security of CPEC projects.

All the federating units and parliamentary leaders have consensus on CPEC, which would be a game-changer for country, he added.

Ahsan Iqbal said that country needs unity and political stability and continuation of policies for economic growth and prosperity. Currently, Pakistan is on the phase of economic takeoff, he added.
The government is committed to complete all the mega projects including CPEC for which all resources would be provided, he added.

He said that terrorism and terrorist activities would not affect the CPEC and other projects, which would be completed in time.

The Minister said that some road links on Western route, to be completed in December 2016, provide connectivity to Balochistan province with other regions of the country.
It would bring prosperity in the province, he added.

Earlier, addressing the Senate Standing Committee on Planning, Development and Reforms, the minister said certain reservations of stakeholders, political parties and provinces Khyber Pakhtunkhwa, Sindh, Balochistan and Punjab including Azad Jammu Kashmir and Gilgit Balochistan, have been removed.
The Senate Standing Committee meeting was chaired by Chairman Senator Col.(R) Syed Tahir Hussain Mashhadi and Reforms in Parliament House on Friday.

He said that the whole country is unanimous that CPEC is a symbol of economic development and prosperity which would promote connectivity and integration among the provinces.

He said that all projects in Gawadar would be completed in 2018 including that would be initiated in 2016.
Gawadar Airport, hospital, vocational institute for skill development project would be started in coming months and completed in 2018.

He said that Balochistan province needs building capacity of local, however to overcome the manpower shortage, recruitment are made on merit basis.

In meeting, official of irrigation department from Balochistan gave presentation on different ongoing small hydro projects in the province and about the current working position.

Senator Sirajul Haq, Mufti Abdul Sattar, Karim Ahmed Khawaja, Nawabzada Saifullah Magsi and official of Ministry of Planning attended the meeting.

This is slightly older news. I believe the latest is that ADB, which is the main financial institute financing CPEC, is now backing out of Basha Dam project... in my opinion (I could be wrong but if you read between the lines you will realize) CPEC is being downgraded to smaller projects.... Because of political instability, corruption, and incompetence.

I think in the next few weeks we will see a trend towards scaling back of CPEC... note I'm not saying terminating CPEC... just scaling back the project to something much smaller.

 

[Kabira]

The headline says TO BE

and Negotiations are underway

Initially China seem to have rejected the offer.

 

[GeraltofRivia]

This is slightly older news. I believe the latest is that ADB, which is the main financial institute financing CPEC, is now backing out of Basha Dam project... in my opinion (I could be wrong but if you read between the lines you will realize) CPEC is being downgraded to smaller projects.... Because of political instability, corruption, and incompetence.

I think in the next few weeks we will see a trend towards scaling back of CPEC... note I'm not saying terminating CPEC... just scaling back the project to something much smaller.

The majority of CEPC projects are financed by Exim bank of China, China Development bank, industrial and commercial bank of China, silk road fund, and the raising AIIB. ADB has involved into some projects but it is not the main institution.

I find it interesting that if ABD does not have sufficient capital to fund a project at this scale, they can either look for a partner with the required financial strength or step aside completely so the vendor can discuss it with other capable financiers.

 

[wiseone2]

Pakistan cannot become hostage of politically motivated tussles. Where billions have already been spent a few hundred million to initiate the project won't make much of a difference. Pakistan should directly approach China and skip the ADB. This mega dam is a vital part to meet our energy requirements. All these banks and other institutes are controlled by outside powers and they won't let anything become a success inside Pakistan. The past history is enough proof. Such projects have been held hostage by banks and outside powers for decades.

He said the United States Agency for International Development (USAID) was conducting a feasibility study on the Diamer-Bhasha dam

You just know how fvcked up things are when you have to rely on USAID for everything including a feasibility study for a mega dam! That is really sad. PML-N owes its very existence to the Americans and this is becoming very clear.

maybe they should ask you to conduct a feasibility study ?

 

[khanmubashir]

14b is a big money to be loaned for..But is there any plan of action about how the return will recovered out of that investment?

power gen revenue as usual

 

[Noman Sherdil]

Its a bad news for Pakistan. Pakistan desperately needs dams. They need to shift their focus from mega projects to Dams and energy projects as these are the back bone of economy