Construction of 4,320 MW Dasu Dam
Saturday, March 23, 2013
By Sajid Chaudhry
ISLAMABAD: The Senate’s Standing Committee on Water and Power was informed here on Friday that the World Bank (WB) would be approached by next week for early start of the construction of Dasu Dam as the feasibility study for the dam has been completed. It has the capacity to produce 4,320 megawatts (MW) power.
The WB has agreed to provide $800 million to Pakistan for Dasu Dam and later on a consortium would be formed by the WB to provide complete financing of up to $2 billion.
The committee’s meeting presided over by Senator Zahid Khan in the Parliament House was attended by senators Moula Bakhsh Chandio, Nisar Muhammad Khan, Humayun Khan Mandokhel and Khalda Parveen.
Federal Water and Power Secretary Rai Sikandar, Water and Power Development Authority (WAPDA) Chairman Raghib Abbas, and other senior officials from the power sector were present in the meeting.
Abbas informed the committee that Diamer Bhasha Dam would remain the top priority of the country, however, owing to challenging situation the government would go for construction of Dasu Dam project and WB has already assured required financing for it. He further informed that at present power shortfall is around 4,000 MW to 5,000 MW and completion of Dasu Dam project would help bridge the power shortfall. He said that this project would not take so long for completion as major preparatory work has already been completed by the authorities. He said that a formal letter would be despatched to the ministry next week for approaching WB through finance and EAD ministries.
He further informed that with the help of Ministry of Water and Power the WAPDA has been able to secure financing for five hydropower projects, which were not provided enough financing during the last four years. There is much activity on the water sector for improving the hydro generation in the country. Updating the committee on progress on other dams, both the officials informed that consultants would start their work on Kurram Tangi Dam project next month. Third and newly constructed power house at Sadpara Dam has just stared functioning. To end litigation on Golan Gol Hydropower project, an agreement has already been reached between lending institution of Kuwait and its tender would be floated within next two working days.
He informed that United States has also agreed to provide $31 million for Kurran Tangi Dam project through USAID and plan is to get the project inaugurated by president of Pakistan within this month.
They also informed that there is much activity on the construction of Naulong Dam, Drawat Dam and Gabir Dam projects. Feasibility study for construction of Munda Dam project has also been completed and European Union has agreed to provide financing for this vital project, however, they complained that the Planning Commission was responsible for delaying the initial financing for this project.
Sikandar informed the meeting that during last one month, the ministry had sped up its efforts to bridge the growing shortfall in demand and supply of power especially in the months of April, May and June.
He informed that financing for furnace oil import has been a major hurdle on the generation side and with the intervention of president of Pakistan, the Ministry of Finance has agreed to arrange Rs 5.4 billion for the opening of Letter of Credit for oil import through Pakistan State Oil. The imported oil would be stored for consumption during the peak summer season to minimise load shedding.
Similarly, the Ministry of Finance has agreed to arrange Rs 10 billion financing through consortium of banks like National Bank of Pakistan and Standard Chartered Bank for provision of fuel and other resources to seven independent power plants (IPPs), which at present have been shutdown owing to non-availability of fuel.
On the assurance of WAPDA chairman oil supplies on credit to seven IPPs would start early to again operationalise them and when financing from banking consortium would be available this credit would be cleared immediately.
The revival of the 7 IPPs would help generate around 1,450 MW power during the summer season and help reduce duration of load shedding. He also informed that some Rs 93 billion general sales tax refund of WAPDA is struck up with Federal Board of Revenue as well as around Rs 200 billion power dues against private sector of the country.
The water and power secretary further informed that uninterrupted gas supply to captive power plants operated by textile sector is going on and what he had proposed to the government was to stop this supply to the textile sector for three months so that this gas would be used for power generation by public sector generation companies during the summer season.
It has been decided in the meeting that the committee will visit different hydropower project sites for inspection of progress thereon. It was also decided that the finance and petroleum ministries will be invited in the next meeting for increased availability of gas for power generation during the upcoming summer season.
Mandokhel challenged the claim of the water and power authority of selling power at Rs 9 to Rs 10 per unit against the generation or purchasing cost of Rs 14 per unit. He said that after including all taxes and levies per unit power is costing a consumer over Rs 15 per unit.
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