Latest news with #DasuHydropowerProject
Business Recorder
26-07-2025
- Business
- Business Recorder
Govt focus on reservoirs minimal despite water woes
ISLAMABAD: Despite the devastating impact of climate change on Pakistan's infrastructure, massive water losses worth billions of dollars and ongoing inter-provincial disputes over water distribution, the government's focus on developing water reservoirs remains minimal. 'The government is working on water reservoirs, but not with the urgency this task demands. We have neither built major reservoirs in the past 40 years nor improved our water usage methods,' said a government official, speaking on condition of anonymity. Pakistan consistently ranked among the top 10 most vulnerable countries to climate change - largely due to the strain on the Indus River system which has been exacerbated by the unilateral withdrawal from the Indus Water Treaty by India in the aftermath of the Pahalgam terror attack and India's insistence that Pakistan is responsible without providing any proof. Water flow in rivers increasing Over 80% of the country's arable land is irrigated by Indus waters. Rising temperatures and recurring heatwaves are expected to intensify water scarcity and worsen drought conditions. According to the Public Sector Development Programme (PSDP) for 2025–26, the government allocated Rs 20 billion for the Dasu Hydropower Project (Stage-I), Rs 3.4 billion for the 1,410 MW Tarbela 5th Extension Hydropower Project, and Rs 500 million for the 54 MW Attabad Lake Hydropower Project. Additionally, funds have been set aside for the refurbishment and upgradation of Mangla Power Station to enhance its capacity from 1,000 MW to 1,310 MW. Rupees 25 billion has been earmarked for the Diamer-Bhasha Dam (including the Tangir Hydropower Project), while Rs 7.78 billion is allocated for land acquisition and resettlement (2nd revised) under the same project. The Mohmand Dam Project (800 MW) has received a substantial allocation of Rs 35.72 billion. The federal government is currently exploring financing options for the $10 billion Diamer-Bhasha Hydropower Project—$8 billion for the dam and $2 billion for the transmission line. Development partners have shown reluctance to commit the required funds. The project, which has an installed capacity of 4,500 MW and a gross storage of 8.1 MAF, is expected to generate 18.1 billion units of electricity annually, plus an additional 2.5 billion units for downstream projects. It is seen as crucial for enhancing energy security, reducing carbon emissions, and addressing water shortages. Last month, Prime Minister Shehbaz Sharif chaired a high-level meeting where he directed authorities to remove all obstacles hindering the timely completion of the $15 billion Diamer-Bhasha Dam, calling it vital for Pakistan's energy and agricultural security. Officials involved in water infrastructure stress the need for diverting additional financial resources toward reservoir development beyond current commitments. The Water and Power Development Authority (WAPDA), responsible for building and managing dams, estimates that new projects could make an additional 10 million acre-feet (MAF) of water available within 4–5 years. 'With new dams, water availability could rise from the current 13 MAF to 23 MAF per annum,' the former Wapda chairman told a parliamentary panel in January. However, the main challenge remains financing, especially for key reservoirs like Diamer-Bhasha. Pakistan currently has access to 135 MAF of surface water, of which 102 MAF is used for agriculture. Nearly 94% of this water goes to agriculture alone. Experts argue this percentage must be reduced—China, for example, brought it down from over 90% to 60%. Efficient irrigation methods, largely under provincial jurisdiction, have yet to be implemented. While the World Bank has funded efforts such as concrete canal delivery systems, actual progress on the ground remains limited. Command area development activities are underway but remain unsatisfactory. Currently, around 450 million acres of land are irrigated with canal water, which typically faces a 25% supply shortfall. To close this gap, Pakistan needs 15–16 MAF of new storage capacity. However, the Diamer-Bhasha Dam, with a 6.4 MAF capacity, will not be operational until 2029 or 2030—by which time demand could increase to 14–15 MAF. Even then, the DBD would only reduce the shortage from a projected 35% to around 25%. Pakistan is now bearing the consequences of its prolonged inaction on water storage infrastructure. To address financing gaps, the government has approached the Arab Consortium—including the Saudi Fund, Kuwait Fund, OPEC Fund, and the Islamic Development Bank (IsDB)—for support. These institutions previously supported the Mohmand Dam, and securitization of existing assets like the Ghazi Barotha Dam is now being explored to fund DBD. 'IsDB, SFD, and the ADB have been approached to help bridge the $3.5 billion funding gap for DBDP. However, no multilateral development bank has yet stepped up as an anchor financier,' said an official source. 'If Wapda is to secure funding, there are two main options: either the government provides a sovereign guarantee — which is unlikely — or Wapda issues a bond based on its balance sheet. But that's not feasible either, given its Rs 214 billion in receivables from the power sector,' said the source. This receivable is part of the broader issue of circular debt, which undermines Wapda's creditworthiness. Lenders are expected to scrutinize Wapda's repayment capacity before committing funds. The government is also exploring loans secured against operational projects or offering attractive returns to entice investors. Nine out of Pakistan's ten largest cities lie within 50 kilometers of the Indus River. The continued degradation of the Indus Basin presents a looming economic, social, ecological, and demographic threat to the country's development and stability. Copyright Business Recorder, 2025
Express Tribune
25-06-2025
- Business
- Express Tribune
Dasu project to start generation in 2027
Listen to article Chairman WAPDA Naveed Asghar Chaudhry visited the Dasu Hydropower Project today to review construction work at key sites, including the main dam, powerhouse, transformer cavern, and the relocated section of the Karakoram Highway (KKH-1). The GM/PD Dasu Hydropower Project and representatives of the consultants and contractors were also present. The chairman presided over a progress review meeting at the project office, where the project team briefed him on targets and achievements. Construction is currently underway at 20 different sites and is progressing at a satisfactory pace. The excavation works on both the right and left abutments of the main dam have been completed. The extended right bypass tunnel and right-side open channel are also complete and ready to divert excess river flow during the high-flow season. Power generation is expected to commence in 2027.
Business Recorder
25-06-2025
- Business
- Business Recorder
Dasu hydropower project to start generating power by 2027: Asghar
LAHORE: Chairman WAPDA Naveed Asghar Chaudhry visited Dasu Hydropower Project Tuesday to review construction work on key sites, including the main dam, powerhouse, transformer cavern and the relocated section of the Karakoram Highway (KKH-1). The GM/PD Dasu Hydropower Project and representatives of the Consultants and the Contractors were also present on the occasion. The Chairman also presided over a progress review meeting at the project office. The project management team briefed him about the targets and the achievements on the project. He was briefed that construction work is currently underway on 20 different sites and is progressing at a steady yet satisfactory pace. Referring to the targets achieved so far and the milestones to be achieved in the days to come, it was briefed that the excavation works on both the right and left abutments of the main dam have been completed. The extended right bypass tunnel and the right-side open channel have also been completed and are ready to divert excess river flow during the high-flow season. Excavation of the main dam foundation is continuing and is scheduled for completion by October this year. Placement of Roller Compacted Concrete (RCC) in the main dam is expected to begin in March 2026. The excavation of the underground powerhouse is expected to be completed by February 2026, while the 25-kilometer-long relocated KKH-1-comprising seven tunnels and three bridges - is scheduled for completion by March 2026. Power generation from the project is expected to commence in 2027. Highlighting the strategic importance of Dasu Hydropower Project for Pakistan's energy needs and economic stability, the Chairman urged the Consultants and the Contractors to excel their efforts to meet the project timelines. Emphasizing upon the significance of maintaining the highest construction standards, the Chairman directed the Contractors to adhere to the stipulated quality standards for completion of the project. The 4,320 MW Dasu Hydropower Project is being constructed on the River Indus in Upper Kohistan District of Khyber Pakhtunkhwa with the financial assistance of the World Bank. The project is planned to be completed in two stages. Currently, WAPDA is executing Stage I, which will have an installed capacity of 2,160 MW and generate 12 billion units of clean, green, and affordable electricity annually. Copyright Business Recorder, 2025
Business Recorder
15-05-2025
- Business
- Business Recorder
Wapda chairman reviews work on Dasu hydropower project
PESHAWAR: Chairman Wapda Engr Lt Gen Sajjad Ghani (Retd) visited Dasu Hydropower Project on Thursday, being constructed on River Indus in Upper Kohistan district of Khyber Pakhtunkhwa. During his day-long visit, the chairman reviewed construction progress on key sites, which included River Diversion System, Main Dam, Power House and relocated Karakoram Highway (KKH-1). The project team, comprising GM/PD Dasu Hydropower Project, the consultants and the contractors, briefed the chairman about site-wise targets and achievements. It was briefed that construction activities on 20 work fronts are progressing at a good pace. Several critical targets have recently been completed, while a number of milestones are about to be achieved. As per the details, excavation of right and left abutment of the Main Dam has been completed. Likewise, extended right bypass tunnel and right-side open channel are also ready for operation to pass excess water during the high flow season. After completion of the upstream and downstream starter (coffer) dams, excavation of the Main Dam's foundation is in progress and will be completed in August 2025. Yet another critical activity of placing Roller Compact Concrete (RCC) in the Main Dam is likely to be started by December this year. Excavation of the Power House will be completed in January 2026, while 25 Km-long KKH-1 with seven tunnels and three bridges will also be completed in February 2026. Electricity generation from the Project is scheduled in 2027. Speaking on the occasion, the chairman urged upon the consultants and the contractors to expedite their efforts for completion of the project as per the timelines. In second leg of the visit, the chairman participated in a Jirga with local elders. Detailed deliberations were made on payment issues under Enhanced Self-Managed Relocation (ESMR) Package and implementation of Local Area Development Schemes (LADS). The chairman said that the Wapda stands committed for socio-economic development of the people hailing from the Project area. He added the Wapda is spending hefty amount on resettlement of the locals, environmental management and social development in the Project area. He directed the project management to keep close liaison with the locals to address grievances. It is important to note that the 4320 MW-Dasu Hydropower Project is planned to be completed in two stages. At present, the Wapda is constructing stage-I of 2160 MW and annual energy generation of 12 billion units of clean, green and affordable electricity. Copyright Business Recorder, 2025
Express Tribune
12-04-2025
- Business
- Express Tribune
Dasu project cost surges to Rs1.7tr
Listen to article The government on Friday recommended the revised Dasu hydropower project for approval at a record-breaking cost of Rs1.7 trillion or $6.2 billion, making it the most expensive hydropower project in the nation's history and raising eyebrows over the "astronomical increase" of 240% in the cost. With a massive jump of Rs1.3 trillion against the original price tag, the per-unit cost of the supposedly cheapest water-based power generation scheme now comes to Rs8.79. This makes it the most expensive hydro venture in the nation's history and requires further billions of dollars of fresh foreign borrowings to complete it. The Central Development Working Party (CDWP), under the chairmanship of Minister for Planning Ahsan Iqbal, took up the "revised Dasu Hydropower Project (Stage-I)" worth Rs1.74 trillion and referred it to ECNEC "subject to WAPDA rationalising the costs and answering the queries," according to an announcement by the Ministry of Planning. The minister "expressed serious concern on massive cost escalation from the original Rs479 billion to almost Rs1.73 trillion due to delays and mismanagement in the project," but still chose to send the scheme to the Executive Committee of the National Economic Council (ECNEC) for final approval with a few observations. The planning ministry stated that Iqbal "directed third-party validation of the astronomical increase in the revised PC-I." The project had originally been approved at a cost of just Rs486 billion in 2014, with a per-megawatt cost of Rs236 million. After the escalation, the per-megawatt cost comes to Rs804 million, compared with the Tarbela Fifth Hydropower Project's Rs148 million. The PML-N government conditionally cleared the scheme for the final nod of the ECNEC, which will be chaired by Deputy Prime Minister Ishaq Dar. The $6.2 billion cost of the project is now almost equal to the $6.7 billion cost of building a railway track from Karachi to Peshawar under the China-Pakistan Economic Corridor (CPEC). Iqbal attributed the "substantial cost escalation to Rs1.73 trillion to mismanagement and delays and lack of progress during the previous government." The minister "took notice of the fact that despite ECNEC directions to appoint an independent full-time project director for each project over Rs3 billion, WAPDA didn't appoint an independent project director for the Dasu project." "It was also pointed out that there was no professional chief finance officer for the project," and yet the minister agreed to send the project to ECNEC. "The minister asked how WAPDA is running a project of this magnitude without a qualified and competent CFO," stated the planning ministry, but he still agreed to clear it. "The minister was angry to learn that WAPDA had awarded a contract for the construction of a 66-kilometer Karakoram Highway section in foreign currency." On his inquiry about why the road construction project was done in foreign currency, WAPDA couldn't give any satisfactory reply. He yet conditionally cleared the project subject to the condition that WAPDA will submit replies to his questions. Iqbal called giving road project contracts in foreign currency "criminal negligence." It was also pointed out that WAPDA had made design changes and incurred expenditure without approval from CDWP and ECNEC. The minister sought an explanation from WAPDA, it added. Iqbal emphasised the strategic importance of the Dasu hydropower project for Pakistan's water and food security. The CDWP was told that in view of the expected increase in the cost of Stage-I of 2,160 MW, the government now needs more foreign and local loans. The forum was informed that WAPDA was in negotiations with the World Bank for a whopping $1 billion new loan. The $1 billion loan will be a mix of expensive and concessional loans. The World Bank has already given a $517 million loan for the project. The government will also get a $400 million foreign commercial loan by using World Bank guarantees. It will also search for Rs350 billion in domestic commercial loans. WAPDA will inject Rs289 billion as equity. Out of it, Rs191 billion will be used to finance the project cost and Rs98 billion, already paid by WAPDA against interest during construction. The rate of return against equity is taken as 10%. The dam height will be 242 meters with roller-compacted concrete type, which has been recommended by the Panel of Experts, as well as the consultants. The powerhouse is located in an underground cavern on the left bank of the Indus River. The main development objective of the project is to improve the management and investment planning of water resources in the Indus River Basin. From 2013-14 onward, PC-I expenditures started, and up to 2023-24, a sum of Rs317 billion has been incurred. The World Bank has been financing the construction of Stage-I, which also includes land acquisition, resettlement, and pre-construction activities. Initially, Stage-I, having a capacity of 2,160 MW, was expected to come online in five years, but due to land acquisition issues and an increase in the scope of work, the project was not completed on the due date and had to be extended up to 2029. The second revised PC-I has been prepared for updating the construction of Stage-I (2,160 MW) of Dasu HPP, including the cost of land acquisition, resettlement, and pre-construction activities such as the construction of the right bank access road from Komila to the Dasu Dam site, relocation of KKH, construction of the project O&M staff colony, and construction of a 132 kV transmission line from Dubair Khwar HPP to Dasu. So far, the work on the main hydraulic structure, spillway, low-level outlets, river diversions, and hydraulic structures has been completed by 23.6%, and the estimated date of completion is 2028. The work on the underground power complex, tunnels, and hydraulic steel structures is only 15% complete.
