All water reservoirs to be constructed by 2015

[Awesome]

http://www.dailytimes.com.pk/default.asp?page=2006\12\02\story_2-12-2006_pg7_15

ISLAMABAD: All dams including Kalabagh, Diamir-Bhasha, Munda, Gomal Zam and Kuram Tangi would be constructed by 2015 under “Water Vision 2025”, President General Pervez Musharraf said on Friday.

“If new reservoirs are not constructed now, Pakistan will face an acute shortage of water by 2025 which will hinder the country’s economic growth,” Musharraf said while presiding over a meeting held to discuss the ongoing hydropower projects in the country, an official statement said.

Musharraf vowed that the government would develop the country’s energy resources on fast-track basis to meet the demands of the expanding industrial and agricultural sectors and sustainable economic development.

The meeting was told that WAPDA was undertaking eight power projects, which would be completed by 2012 and generate 1,155 megawatts of electricity. The meeting was told that the Mangla Dam raising project would store 2.8 million acre feet of water and generate 644 megawatts of additional electricity. The meeting was told that the Gomal Zam Dam project would be completed at an estimated cost of Rs 8.2 billion and have a storage capacity of 890,000 million acre feet of water. staff report

 

[Neo]

Sunday, December 03, 2006

‘Diamer-Bhasha Dam to change Northern Areas’

* PM says expansion of Karakoram Highway will boost tourism

ISLAMABAD: Pakistan’s Northern Areas have great potential in the fields of tourism, mining, hydro electricity generation and the government has taken a number of initiatives to harness potential for the economic development of the areas, said Prime Minister Shaukat Aziz on Saturday.

He said this while talking to Northern Areas Deputy Chief Executive Mir Ghazanfar Ali Khan who called on him at the Prime Minister’s House. The implementation of various development projects, such as construction of Diamer-Bhasha Dam and the law and order in the areas were discussed in the meeting.

He said that the Chinese president’s visit to Pakistan had opened up a number of new fields of cooperation to both countries, including tourism and trade, adding that the expansion of the Karakoram Highway would contribute to strengthening of bilateral economic and trade ties.

The prime minister said the Diamer-Bhasha Dam would greatly enhance the economic infrastructure of the area through employment generation, adding that a new era of development and prosperity would begin in the area. He said that the tourism sector was vital for the area’s development.

Ghazanfar Ali briefed the prime minister about the efforts made by the Northern Areas’ administration to improve law and order and to speed up the development projects. He said that as a result of the government’s focus on development, a large number of development programmes were in various stages of completion. He said that the projects would improve the living standards of people and would contribute to the overall development of the area.

http://www.dailytimes.com.pk/default.asp?page=2006\12\03\story_3-12-2006_pg11_1

 

[Neo]

ADB donates $77m for Kabgam Dam construction
Sunday December 03, 2006

HERAT CITY: Asian Development Bank (ADB) donated more than $77 million for the construction of Kabgan Dam, to help in irrigation and also store water of Salma Dam in the western Herat province.
Brian Fawcett, director of ADB in Afghanistan said that 15 millions of donated amount was granted and the rest was granted as a loan to Afghanistan government. He said primary survey was completed and work would soon on the project that would be completed in five years.

Fazl Ahmad Zakiri, head of the Water Resources and Irrigation Department at Herat, said with the completion of Salma Dam more than forty thousand acre of land would be irrigated and with the construction of Kabgan Dam thousands acres of land would become cultivatable.

According to Zakiri about $40 millions will be spent to provide water channels from Salma Dam which is 75 km long and 12 meters wide, and the rest will be used to build Kabgan Dam. Zakiri said Salma Dam would be built in two years at the cost of $ 80 millions donated by India. Due to long wars in this central Asian country, work on the project was started on the project with greater delay.

http://www.paktribune.com/news/index.shtml?161932

 

[Neo]

Work on Mangala dam raising in full swing: PM
Sunday December 03, 2006

ISLAMABAD: Prime Minister Shaukat Aziz presides over a meeting on Mangla Dam Up-Raising at Prime Minister House.

ISLAMABAD: Prime Minister Shaukat Aziz has said that the work on Mangla Dam raising is going on in full swings and it will be completed by December 2007, which will give additional capacity of 2. 9 MAF water and 644 GWH additional annual power generation.
The Prime Minister was chairing a meeting here this evening to review progress of Mangla Dam raising project. A detailed briefing was given to the Prime Minister by WAPDA about physical progress on each aspect of the project.

The Prime Minister emphasized the need for timely payment of the compensation packages to the affectees. He asked the relevant authorities to take all necessary measures to ensure that alternate land is handed over to the affectees well in time.

The Prime Minister was informed that the total cost of the project is Rs. 62 billion and its economic rate of return is 18% with more than Rs. 10 billion annual return.

The Prime Minister was informed that a total amount of Rs. 26 billion would be paid to affectees as compensation for land & other works, houses and cost of resettlement works.

The Prime Minister was informed that the process of the payment of compensation packages and land allotment would be completed by the middle of 2007. Development work on new city and four small towns which are being built as part of the project is on target and these new localities will have modern infrastructure and all facilities of life.

The meeting was attended by among others by Minister for Water and Power Mr. Liaqat Ali Jatoi and senior officials.

http://www.paktribune.com/news/index.shtml?161899

 

[niaz]

Even though sorely needed, I have my doubts if Kala Bagh dam will be ever constructed.

 

[Neo]

Pakistan requires more big dams: Wapda

LAHORE: December 07, 2006: Pakistan unavoidably requires construction of more than one mega water reservoirs to cater for the increasing needs of the country in water as well as power sector.

This was stated by Mr. Tariq Hamid, Chairman Wapda while briefing the delegation of Armed Force War Course of National Defence College (NDC) Islamabad, which visited Wapda House here on Thursday.

The Chairman Wapda said Pakistan was fast heading towards a situation of acute water shortage due to rapid growth in population and depleting storage capacity owing to sedimentation, thus, making the construction of mega reservoirs inevitable without further delay.

Tariq Hamid apprised the delegation that, at present, Pakistan has storage capacity of nine per cent of total water available whereas the average storage capacity world-wide stands at about 40 per cent.

He cautioned that Pakistan would be a water-short country like Chad and Ethiopia by the year 2012 if storage capacity was not enhanced considerably. Having cultivable land base of 77 million acres, Pakistan has potential to bring about 22.6 million acres of virgin land under cultivation provided additional water is made available, the Chairman observed.

Talking about the power sector, the Chairman said the annual growth in electricity consumption during the last four years has been recorded as a 9.8 per cent. He shared with the delegation that load on Wapda system increases by 2000 MW of electricity during the peak hours from 6.30 p.m. to 10.30 p.m.

To address problem of possible shortage of electricity in coming years, they have to generate sufficient electricity at affordable rates and that is only possible through construction of big dams, he said.

Referring to the future plans of Wapda, the Chairman said transmission system is being strengthened and improved to bring down system losses to acceptable limits.

He said a number of projects worth Rs 19.6 billion would be completed by this month except Muzaffargarh-Gatti transmission line, which would be operational by December, next year.

The Chairman, making detailed deliberation about the performance of power utility, apprised the delegation that as many as 3778 villages had been electrified, while, 6098 tube wells had also been energised till October 31 during the current fiscal year.

He hoped that most of the targets set for the village electrification for the year 2006-07 would be met. He said all villages comprising of 10 or more households throughout Pakistan except Balochistan would be energised by December 2007 as committed by the President General Pervez Musharraf to the people of Pakistan, however, in Balochistan, the villages would be electrified through alternate resources of energy.

Later, Wapda Chairman Tariq Hamid and the head of the delegation Major General Shahid Iqbal exchanged souvenirs.

Member (Finance) Imtiaz Anjum, Member (Power) Muhammad Anwer Khalid, Member (Water) Muhammad Mushtaq Chaudhary and other Wapda senior officers were also present on the occasion.

 

[Neo]

Kachhi Canal project to be completed by 2010: Qadeer

ISLAMABAD: December 07, 2006: Additional Secretary Planning and Development, Balochistan Sohail Qadeer on Thursday said Kachhi Canal project would irrigate almost 7 lac acres land in the province and would be completed by 2010.

Talking to the state-run TV he said, 22 percent work had been completed on the project, adding different developmental projects are under process in the province which would help alleviate poverty.

He said, a huge development budget had been fixed for Balochistan and importance is being given to improve road network, adding Rs.77 billion had been spent on road network.

Sohail said, besides mega projects in Balochistan focus is also on traditional set-up like agriculture, fisheries, minerals and livestock.

Most development projects signed during the visit of Chinese President Hu Jintao were related to Balochistan, he added.

He said, technical training institutes which would be established for training of women and children would empower women in Balochistan.

As far as minerals explorative from Balochistan was concerned it would provide employment opportunities not only for the locals but people from other provinces would also be adjusted, he added.

 

[Neo]

Diamer-Bhasa dam threatens 1000 yr old remains in Pakistan's Northern Areas :read:

Islamabad, Dec 7: A renowned German archaeologist has mapped out thousands of years old archaeological remains in Pakistan's Northern Areas, which would be lost forever as a result of construction of the Diamer-Bhasha dam.

The dam is being planned in the Northern Areas or Gilgit Baltistan and the reservoir would endanger precious archaeological remains including some 50,000-rock carvings and 5000 inscriptions. This, besides the inundation of 32 villages located between Basha and Raikot Bridge, and the resettlement of more than 30,000 people in the area.

Prof (Dr) Harald Hauptmann of Heidelberg Academy of Sciences and Humanities, who has been working on these sites with Dr Ahmad Hassan Dani of Quaid-i-Azam University since 1985, said it made him 'very sad' that ancient remains ranging from the Epipalaelolithic or Neolithic age to 16th century AD would vanish completely as a result of this dam.

"So much had been written about the construction of the dam and so many issues and problems highlighted, but it is so sad that not once has anyone ever raised the concern that the world was about to lose one of its greatest treasures," the Dawn quoted Dr. Hauptmann as saying.

"The greatest part of the rock art galleries of Diamer District would be destroyed as a result of the construction of the dam. Forget everything. More than 80 per cent will be submerged and the remaining rock carvings on the slopes be destroyed because of the construction of the new 100-km stretch of Karakorum Highway," he said.

Dr. Hauptmann is heading the research project focusing on documenting and publishing the rock carvings and inscriptions found in the high mountain region of northern Pakistan.

He said the archaeological team was eager to save the ancient relics and was considering bringing hi-tech equipment from Germany to perform three dimensional scanning and photography.

"We feel responsible to preserve this knowledge of the past for the future generations. We have documented more than 80 per cent of the carvings and scriptures. It would be impossible to move huge boulders. Cutting the granite boulders would be time consuming and doable, but transporting huge rock pieces impossible. So German archaeologists will bring their high-tech equipment to perform three dimensional scanning, take photographs and sketch the impressions and produce replicas to be saved in museums," he said.

He said the team had met federal Culture Ministry Secretary Jalil Abbas and was pleased at the considerable level of cooperation extended by him to make the project a success.

"There is now a chance to get a decision out of the government to preserve its rich archaeological treasures. We have proposed establishment of museums and documentation centre in Gilgit where replicas will be preserved. Visitors and tourists will thus have access to knowledge of the cultural heritage of the region, their people, traditions and living lifestyles a step that can develop the tourism industry enormously," he said.

"Rock carvings could be found in Africa and Australia, but nowhere in the world would we find world's largest and richest rock art galleries like the ones in Pakistan's north," he added.

According to Prof. Hauptmann, one of the world's largest rock art provinces was spread along the banks of upper Indus in the high mountains of northern Pakistan, adjoining Hindukush, western Himalayas, and Karakorum.

Petroglyphs of unique diversity and abundance covered cliffs, rock faces, and boulders lining Indus river from Indus Kohistan to Baltistan and reaching as far as Ladakh and Tibet and the rock art sites did not only follow the routes along the Indus itself, but also graced important mountain passes and the valleys of the Indus tributaries including Gilgit river up to Yasin and Hunza valley.

"A main cluster was however, found between Shatial in Indus-Kohistan and Raikot Bridge extending over more than 100km. The heart of this complex lay at the foot of Nanga Parbat (8,125m) around Chilas and Thalpan in the Diamer District. Their tremendous diversity not only permitted insight into the history of various peoples with different social-cultural and political traditions and religious beliefs, but also disclosed the strategic importance of the region," Prof. Hauptmann added.

"These high mountainous areas had been a crossroad of important trade routes connecting China and Central Asia to the subcontinent," he said.

http://www.newkerala.com/news4.php?action=fullnews&id=63060

 

[Neo]

Country's economy growing rapidly: adviser

LAHORE (January 10 2007): The government is determined to complete construction of five mega dams by 2016 because new water reservoirs are inevitable for the country's survival.

This was stated by Advisor to Prime Minister of Pakistan for Economic Affairs, Dr Salman Shah, while talking to media persons here on Tuesday after addressing the international water conference titled 'Water for Life and National Economy-Review of Practices', organised by 'Journal Development Times', in collaboration with the Civil Engineering Department of the University of Engineering and Technology, Lahore, National Productivity Organisation, Ministry of Industries and Production, Nespak, NDC, and Engineers Study Forum.

He said that $5-6 billion each had been allocated for the construction of 5 mega dams. The government is committed to fulfil the power requirements of the country by adopting alternative measures of energy like coal, furnace oil etc, he added.

He said that the country's economy was rapidly growing, and pragmatic measures were being taken to further strengthen it by developing the water and agriculture sectors. "There is conducive environment for foreign investment in Pakistan, and the target of $5 billion foreign investment would be easily achieved," he added.

Dr Salman said that there was no sugar crisis in the country; however, some sugar mills owners of Sindh had a few problems, which would be resolved soon through dialogue. "The government is investigating increase in sugar prices made by unscrupulous elements during Eid holidays," he said.
http://www.brecorder.com/index.php?

id=515743&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

No trifling with dams


PAKISTAN faces crises of all kinds. There is the water crisis on account of the shortage of water in the rivers and a shortfall in its storage capacity. The country is also in the midst of a power crisis because of inadequate generation of electricity. These shortages have affected agriculture as well as industry which could cause a slowdown in economic growth. Obviously, this is worrying for the government which has pinned its political future on its economic success. Hence the official knee-jerk reaction, with Islamabad making it known that it plans to build five big and small dams by 2016 — in nine years from now. The dams have acquired the status of a magic wand which is waved from time to time in the belief that it will solve the country’s water and power problems. But the reality is quite different.

While one cannot be certain that all these dams, namely, Kalabagh, Bhasha, Munda, Kurram Tangi and Akhori, are feasible and environmentally safe, technical opinion is also divided on their feasibility. This is only one aspect. The other is their political and economic impact. Thus, Kalabagh became such a contentious issue last year even after the technical committee had given its report — by no means unanimous — that President Pervez Musharraf had to go on television to announce that this mega dam was being put on hold for the moment. As a sop, he announced that work on the Bhasha dam would begin in February 2006. But that has not happened because the government is now trying to mobilise funds amounting to $17 billion to construct these dams. Meanwhile, a new set of protesters challenging the construction of the Bhasha dam has emerged, making it unlikely that politically this and other projects can have a smooth sailing. The government seems to be bent on going ahead with the construction of these dams irrespective of the people’s opposition to them. Thus on Saturday an inter-provincial committee finalised a draft report on the dams claiming that a consensus had been reached on implementing the cabinet’s decision.

It is not known when and how this consensus was reached. The fact is that the federal government has not adopted a transparent policy on consensus building. Islamabad has made no visible effort to initiate a consultation process involving not just official opinion in all the provinces but also private and NGO views on the issue. Besides obtaining the cooperation of all the provinces, it is also important that the people extend their support to the projects as in the final analysis they will be the ones who will have to repay the massive loans to be incurred. Rather than hastening with work on these projects, the government should proceed methodically and look into all aspects such as economic feasibility, environmental impact assessment, and so forth, without bypassing any of them. It is also important that the engineering aspect of the projects is carefully studied to ensure that none turn out to be unfeasible midway. The disadvantage of bringing up this issue every now and then is that it distracts from the alternative proposals that have been made from time to time and deserve to be fully considered. Since the lower riparians, especially Sindh, fear that their water flow in the river will be considerably reduced, sound arguments based on facts and figures will have to be produced to convince the sceptics.

http://www.dawn.com/2007/01/23/ed.htm#1

 

[Neo]

January 28, 2007

Official claims dam consensus

By Ihtasham ul Haque

ISLAMABAD, Jan 27: The government has achieved consensus on building five major dams by 2016 at a cost of $25 billion, claimed a senior official. “Certainly this is a breakthrough as consensus has been achieved among the four provinces on major technical issues to soon start these mega dam projects,” Lt-Gen (retd) Mohammad Zubair, member, project implementation, Planning Commission, told a news conference on Saturday after a meeting of the Central Development Working Party.

He said a report of a sub-committee on dams headed by secretary for water and power Ashfaq Mahmood was presented in the CWDP meeting, forging consensus over construction of Kalabagh, Diamir-Bhasha, Akohri, Munda and Kuramtangi dams.

He, however, admitted there were some “minor irritants” that needed to be removed, but said “this is not an issue which can pose any problem to start these projects”. In principle, he said, it was agreed by members of the committee on dams to go ahead with the dam projects in order to end growing water shortages in the country.

Answering a question, member, infrastructure and energy, Planning Commission, Dr Asad Ali Shah, said the report would now be presented in the Executive Committee of the National Economic Council for further discussion.

Asked whether political consensus had also been achieved over construction of controversial dams, he said Ecnec would take up such issues. “Political dimensions of bigger dams will be covered by Ecnec in which the leadership of the provinces will also be present,” he said.

However, he did not comment when asked whether opposition parties, opposing especially the Kalabagh dam, would be consulted to achieve a broader consensus. Gen Zubair said issues relating to acquisition of land were being sorted out for which Wapda had been assigned the task to work out a plan of action.

http://www.dawn.com/2007/01/28/top5.htm

 

[Neo]

Basho project to meet Northern Areas' power needs

ISLAMABAD (January 29 2007): The federal government has planned to build Basho Hydropower Project in Northern Area which will produce 28 MW electricity to cater for power needs besides store water for irrigation purposes.

The Wapda after initial study by the German team has submitted proposal to the planning commission for an allocation of Rs 91.243 million to conduct detail engineering design and preparation of tender documents for Basho Hydropower Project.

During the proposed 18 months study period, design of civil works, electro-mechanical equipment would be optimised according to latest data and information from field investigations.

Field investigations will include, topographic and other surveys, flow measurements, seismic refraction, surface geological mapping, sub surface drilling, test pits, field tests and identification of barrow areas.

The project would be connected to Skardu and other load centres in the upstream valleys through 66 KV transmission line.

The project is aimed at providing additional power to local areas of Skardu and adjacent valleys by using the indigenous energy resources in Northern Areas by optimal development of hydro electric potential and to help narrow the gap in the supply and demand.

Discharge of off taking channel between weir and powerhouse would be estimated to take care of water rights of Basho village. Stage gauge was installed near weir axis to record water level and corresponding discharge.

Studies leading to measures/arrangement for sediment control and management will be carried out. At all established gauging stations, sediment data will be collected. The data so collected shall be analysed and used in the designs of various parameters of the scheme.

Basho valley can be characterised by rugged mountain and deep cut 'U' shaped valley. The flat lands are present in the shape of terraces, which are cultivated in summer.

Downstream of weir, valley is steep and the whole valley is full of glacial sediments. Morainic material/terraces are present on both sides of the Nullah at different level throughout the valley length.

Seismic hazard analysis was carried out for Basho project area. The seismicity of project area would be re-evaluated with recent earthquake of 2002 and 2005 in Northern Pakistan.

A seismic network is proposed in the project area to closely monitor the seismic activity in the zone, which will be helpful in the effective design of critical structures like dams, tunnels etc.

The official said that a number of tributaries with steep gradient in Northern Areas offer enormous potential. Under the comprehensive planning of hydro power resources on tributaries of Indus river in Northern Areas, 122 schemes were identified with estimated capacity of 773 MW available during winter months when local power demand is maximum and flows in the Nullah are close to minimum.

Among the identified potential sites, four most promising potential sites were selected to be studied for feasibility level. These four schemes were Phandar 80 MW in Ghizar district, Naltar 32 MW in Gilgit district, Basho 28 MW and Harpo 33 MW in Skardu district.

The feasibility studies of these four promising projects were carried out in collaboration with GTZ of Germany.

The capacity of existing power stations in Northern Areas are in the range of 50 to 4000 KW according to the local demand and the allocated funds. Two medium size power stations 18 MW in Naltar valley near Gilgit and 13 MW in Satpara Nullah near Skardu are under construction.

http://www.brecorder.com/index.php?id=523227&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Sunday, February 04, 2007

KBD ready by 2015

* President seeks votes for moderate, pro-development candidates in general elections
* Says terrorists and extremists stigmatising Islam, must be eliminated

OKARA: President General Pervez Musharraf has said that Pakistan badly needs new water reservoirs and pledged that Kalabagh Dam will be built by 2015.

New dams would go some way towards meeting the country’s energy requirements, and would also boost agriculture by providing more irrigation water, Gen Musharraf said in a public meeting here at Jinnah Stadium on Saturday. Work on Bhasha-Diamer Dam is underway and four other reservoirs, including Kalabagh Dam, will be built by 2015 “at every cost”, he said.

The president said general elections would be held by the end of this year and they would be fair and transparent. “The current assemblies will complete their tenure. We have established genuine democracy in the country,” he said.

Gen Musharraf urged the audience to vote in the elections for those who could put Pakistan on the path to moderation, undiluted democracy and development, adding that a vote for them would be a vote for him.

He said Pakistan faced no external threat, but “we are facing threats from extremism, sectarianism and terrorism. These menaces will have to be uprooted for the development of the country. Innocent people are being killed through terror acts and suicide attacks. This is all happening in the name of Islam. Those involved in these acts are a stigma in the name of Islam and they are undermining the real spirit of Islam.”

“We will have to get rid of extremists,” he said, and urged people to strengthen his hand so he could eliminate terrorism.

“We are playing a leading role in the Muslim Ummah and this bears clear evidence of the socio economic development of the country,” he said. No legislation will be enacted in Pakistan which is contrary to Islam and its teachings, he said.

Gen Musharraf said “certain elements” were creating chaos in the name of Islam. “But here Islam is facing no threat from anywhere. We will enact no law which is repugnant to Islam and nor does the constitution of the country permit this.”

The president announced that Rs 3.5 billion would be spent on development schemes in the area. He inaugurated the 14-kilometre Okara-Depalpur bypass, which will cost Rs 620 million. A bridge at Syewala over the River Ravi would be built at a cost of Rs 340 million. A cadet college in the area is under construction and a University of Education will be built at a cost of Rs 450 million. A campus of the Agricultural University would also be set up in the area. He said he would recommend the Higher Education Commission prepare a feasibility study for the establishment of a medical college in Okara as well.

The president said the first phase of the provision of natural gas to the area had been completed and vowed that every tehsil headquarters would have this facility by the end of 2007.

He announced Rs 250 million for the improvement of Faisalabad-Okara Road, and for a CT scanner and dialysis centre at District Hospital Okara. He also announced the establishment of an export promotion zone in Okara. Punjab Governor Khalid Maqbool, Chief Minister Pervaiz Elahi and Defence Minister Rao Sikandar Iqbal also spoke on the occasion.

http://www.dailytimes.com.pk/default.asp?page=2007\02\04\story_4-2-2007_pg1_1

 

[Neo]

February 05, 2007
Funds for Neelum-Jhelum project

By Khaleeq Kiani

ISLAMABAD, Feb 4: Pakistan is expected to finalise by early next month a $1.4 billion financing arrangement with China and Qatar to start construction of a much-delayed 969MW Neelum-Jhelum Hydropower Project in Azad Kashmir.

A project of Water and Power Development Authority (Wapda), the project has been in doldrums for six years and is considered crucial to secure Pakistan's priority rights over Neelum waters - a tributary of the river Jhelum - threatened by the Indian move to use its waters for power generation and diversion.

Prime Minister Shaukat Aziz told Dawn that his government had decided to construct the project in the public sector and he had issued instructions last week to make financing arrangements. "I have set a deadline of six weeks to finalise everything", he said.

His advisor on Finance Dr Salman Shah said that the government of Qatar had committed to invest $2-2.5 billion in Pakistan and there was an option to include Neelum-Jhelum project in their investment programme. "They can finance construction of the project". Secondly, the company selected by Wapda has also provided the option of financing the project through the Bank of China on buyer's credit.

Responding to a question if a financing offer for the project from the US-based YRM could also become part of the overall foreign funding, Mr Shah said the government of Pakistan could not confirm credibility and funding viability of the US firm. Also, credible sources like the Bank of China and Qatar government were better options. "We will finalise funding arrangement within four-weeks", he told Dawn on Sunday.

Responding to another question if the government would also issue bonds to raise funds for the project, he said if the financing programme (from the

China and Qatar) comes with the contract then there will be no need for bonds. However, there may be a need for bonds at a later stage if the project specific company was to be set up to run it.

An official at the private power and infrastructure board (PPIB) said the PM’s advisor on Finance would be holding a meeting of all the stakeholders in a couple of days to examine all options in detail. He said a $300 million credit line from the Bank of China has been lying unutilised for quite sometime and could also be considered for the same project.

The bidding for the construction of the project had been held seven months ago. Since then, the government has been contemplating arranging one billion dollars foreign exchange following Wapda's inability to secure the lowest bid with financing facility.

Wapda has been seeking about $600-800 million buyer's credit as part of the engineering, procurement and construction (EPC) contract for the construction of $1.4 billion project. The project has already been delayed by more than six years due to lack of public-sector allocations for the project. Several rounds of bidding have been held and cancelled for one reason or the other.

The project should have been started in 1999 as originally planned. It is estimated to take at least seven years for completion. Currently, officials of the Finance and Economic Affairs Division are evaluating terms and conditions of the Chinese and Qatari financing.

The mode of foreign financing was earlier changed by the government from supplier's credit to buyer's credit which would mean that Pakistan's sovereign guarantees would be provided for the loan. The supplier's credit project-financing is usually based on the credit guaranteed by the export credit guarantee agency of the offering country while buyer's credit project-financing by a sovereign guarantee issued by the recipient country.

A few months ago, Wapda received three bids for the construction of the project. The lowest $1.3 billion bid from a consortium of China Gezhouba Group of China and the CMEC China was recommended by Wapda to the federal government for approval.

The bid from a consortium of Vinci of France and the Frontier Works Organisation (FWO) that had offered to provide $800 million credit on soft terms was rejected on technical grounds because the FWO did not have relevant experience as lead contractor.The China International Water & Electric Corporation emerged as runner-up with a contract price of $1.8 billion to complete the project and also offered financing facility of $800 million but the bid money was too high.

Pakistan had stopped India about a year ago from completing a 22km tunnel that sought to construct a storage-cum-power project and divert Kishanganga (Neelum) waters to Wullar Lake in violation of the Indus Waters Treaty 1960. Later, India offered to alter its project design but Pakistan rejected that plan as well. Like the Chenab, Jhelum River of which Neelum is an integral part belongs to Pakistan under the 1960 treaty. Under the treaty, India cannot divert waters from Jhelum and Chenab rivers.

Under the treaty India could not change the flow of Jhelum River even for power generation that may affect any Pakistani power project. But if Islamabad fails to construct the project and there is no power project in Pakistan that could be affected on that particular river, India could divert the river for run-of-the river project but without any storage.

Under the treaty, Pakistan has exclusive rights to use water of western rivers - Indus, Jhelum and Chenab - while eastern rivers - Ravi, Sutlej and Beas - have been assigned to India.

http://www.dawn.com/2007/02/05/top6.htm

 

[Neo]

February 08, 2007
Musharraf urged to review plan for dams

ISLAMABAD, Feb 7: Two organisations representing farmers and the business community of Sindh have appealed to President Gen Pervez Musharraf to review his assessments on the construction of dams and canals on the River Indus.

The Sindh Chamber of Agriculture (SCA) and Sindh Abadgar Board (SAB) have said that the people of the province had been consistently expressing their “technically well founded” concerns on the construction of dam on the River Indus. The provincial assemblies of the NWFP and Sindh had also passed similar resolutions against the construction of the Kalabagh dam.

The organisations, in a joint statement issued here on Wednesday, have asked the president to also study the more economical alternatives that are still available before going for the implementation of any future strategy for water storage.

They said the World Bank (WB) evaluation found in 1996 that water conservation measures saved more water than the largest new dam and also cost one-fifth of the total cost of constructing a new dam. The cost of Kalabagh dam may be $15billion as reported by the WB. The Asian Development Bank (ADB) estimated that additional 4.7 million acre feet (MAF) of water could be provided by the conservation measures at a cost of $1.7billion.

According to the president of the Sindh Chamber of Agriculture, Syed Qamar Zaman Shah, reports appeared in the media suggested that there was simply no surplus water to entertain the idea of any future dam.

He said the requirement of the Kalabagh dam was 104MAF against the availability of 90MAF, which showed that there was already a shortfall of 14MAF.

Sindh Abadgar Board president Abdul Majid Nizamani said the Technical Committee on Water Resources headed by A. N. G. Abbasi had made various recommendations which should be taken into consideration for any future strategy for construction and regulation of any irrigation works because, it was Gen Musharraf himself who had appointed the committee.

The A. G. N. Abbasi committee had reported that there was no surplus water available except in occasional high flood years which occurs once in five or 10 years.

He said that it was also claimed that there was an inflow of 90 MAF at Kalabagh (including flow of the River Kabul), which justified the construction of the Kalabagh dam. In fact, Mr Nizamani added, the average inflow of Kalabagh was not even sufficient to meet the downstream requirements.

He explained that according to the inter-provincial water distribution accord, there was 18 MAF water available for distribution, while 13 MAF went to system loses, and 10 MAF outflow to the sea. This amounted to 104 MAF.

If, additional requirements of Kalabagh (6.1MAF), Akori (7MAF), Munda (1MAF), Kurrum Tangi (1MAF), Gomal Zam (I MAF) and Left Bank Outfall Drain (2.2MAF) was added to the total requirement would go beyond 134.3MAF against the availability of 90MAF, he added.

http://www.dawn.com/2007/02/08/nat1.htm