Govt allocates paltry Rs15bn for proposed Diamer-Bhasha Dam
Project requires $12 billion funding
Friday, June 11, 2010
By Tariq Butt
ISLAMABAD: The government has earmarked a paltry sum of Rs15 billion in the Federal Budget 2010/11 for the proposed Diamer-Bhasha Dam against the required funds of around $12 billion, according to the budget document.
Out of this allocation, the federal government will provide Rs5 billion and the remaining Rs10 billion would be arranged by the Water and Power Development Authority (WAPDA) through its own resources, including loans and not through the Public Sector Development Programme (PSDP).
The allocated Rs15 billion is meant for acquisition of land and to build other infrastructure, including a residential colony before starting the construction of the dam that would produce 4,500 megawatts.
The Diamer-Bhasha Dam would cost around Rs894.257 billion. Out of this, a foreign funding of around Rs313.732 billion would be required.
An official of the Planning Commission told The News that much before the budget announcement, a committee comprising officials of the ministries of Kashmir Affairs, Northern Areas, Water and Power and Planning Commission had finalised Rs40 billion for the acquisition of land for the dam.
However, a senior WAPDA official said that the allocated Rs40 billion would be disbursed in three years among the displaced persons.
The federal government has made the allocation for the proposed Diamer-Bhasha Dam at a time when Pakistan is plagued by severe power outages. Originally, the project was scheduled to start in the concluding quarter of the last year.
Pakistan is expecting $5 billion from the Asian Development Bank (ADB). The people of Northern Areas have expressed some reservations over the demarcation of the site of the project and said that the land over which the proposed powerhouse would be installed is located in the Northern Areas, but the Khyber-Pakhtunkhwa claimed that the powerhouse has been proposed in its jurisdiction.
The dam will be built on River Indus, around 300km upstream of Tarbela Dam and around 40km downstream of Chilas Town.
Having a height of 272 metres, it would be the highest roller compacted concrete dam in the world. The dam would have 8.1MAF gross and 6.4MAF live water storage capacity.
The dam would not only provide a lifeline to the Tarbela Dam by increasing its water storage capacity for minimum 40-45 years, but also generate energy through installed capacity of 4,500MW. It would also help reduce dependence on thermal power.
Micro Seismic Monitoring System has been installed to monitor seismic activities in the project area, while meteorological station is being established at the site.
Officials said that there was significant escalation of land acquisition rates by the Diamer Chilas district administration from the original estimates incorporated in 2008 PC-1.
There is a staggering increase in the value of the property by over 130 per cent in one year. The funds required for the land acquisition would go up if the compulsory acquisition compensation of 15 per cent over the value assessed by the deputy commissioner is factored in.
The money would be paid as compensation for households, constructed property and trees and for resettlement of the affected persons and development of model villages, he said.
In January 2006, the president had announced construction of five multipurpose storages in the country in the next 10-12 years. The Diamer-Bhasha Dam project was to be undertaken in the first phase.
On November 11, 2008, the Executive Committee of the National Economic Council gave the go-ahead to the project.