This is gonna be a huge project in the coming years, costing a gargantuan sum of money; our version of the Hoover dam or Three Gorges Dam. I think it deserves its own thread. If undertaken and completed, it will be one of the most challenging engineering endeavors ever undertaken in Pakistan.

Official website: http://www.diamerbhasha.com/

Diamer-Bhasha Dam is the name of a dam that has been planned in the Northern Areas of Pakistan on the River Indus.

Construction

The President of Pakistan during his national address on 17th January 2006 announced the decision of Government to construct 5 multi-purpose storages in the country during next 10 -12 years. Diamer Basha Dam Project will be undertaken in the first phase. Work on the project started after the ground-breaking ceremony by the President of Pakistan. On completion of detailed design and tender documents, the construction of Diamer-Bhasha Dam - the world's highest Roller Compacted Concrete Dam will commence.

The Executive Committee of the National Economic Council (Ecnec) on November 11, 2008 gave the go-ahead to the Diamer-Bhasha Dam project. Work on the dam would begin in September 2009 and the total cost of the project has been estimated at $12.6 billion. The deadline for completion is 2016.

The Project

The project is located on Indus River, about 315 km upstream of Tarbela Dam, 165 km downstream of the Northern Area capital Gilgit and 40 km downstream of Chilas. The proposed dam would have a maximum height of 270 m, and impound a reservoir of about 7,500,000 acre feet (9.25×109 m3), with live storage of more than 6,400,000 acre feet (7.89×109 m3). Mean annual discharge of Indus River at the site is 50,000,000 acre feet (6.2×1010 m3). Thus the dam will impound 15% of the annual river flow. The dam project would cover an area of 110 km2 and extend 100 km upstream of the damsite up to Raikot Bridge on Karakoram Highway (KKH).

Need for the project

Agriculture is the backbone of Pakistan’s economy. Pakistan today is among one of the World’s fastest growing population, now estimated as over 170 million. Due to lack of large river regulation capability through sizeable storages, the country is already facing serious shortages in food grains. Given the present trend, Pakistan could soon become one of the food deficit countries in the near future. Therefore, there is a dire need to build storages for augmenting agriculture production.

Tarbela, Mangla and Chashma reservoirs have already lost about 5,000,000 acre feet (6.2×109 m3) due to sedimentation. It is estimated that by year 2012, this loss would increase to 6,000,000 acre feet (7.4×109 m3), almost equal to the original combined capacity of Mangla and Chashma reservoirs.

Due to complete stoppage of any sizable multi-purpose storage development after commissioning of Tarbela Dam in 1976, sustainability of existing irrigated agriculture of Pakistan is in serious jeopardy. The President has taken a very bold initiative by taking the decision to construct Diamer Basha Dam Project.


The present demand of electricity in country is above 17,000 MW, which is estimated to cross 22,000 MW by the year 2010. A large-scale injection of power thus becomes inevitable. Hydropower will provide the required electricity at affordable price. Contribution of 4500 MW power from Diamer Basha Dam will go a long way in alleviating this situation.

Project benefits

• Availability of about 6,400,000 acre feet (7.89×109 m3) annual surface face water storage for supplementing irrigation supplies during low flow periods • Harnessing of renewable source of clean and cheap energy through installed capacity of 4500 MW • Reduction of dependence on thermal power, thus saving foreign exchange • Employment opportunity, particularly to the locals, during the construction and operation • Creation of massive infrastructure leading to overall socio-economic uplift of the area and standard of living of people.

Environment & Resettlement

• No. of villages affected 30 • No. of Houses Affected 2800 • Population affected 28,000

• Agricultural land submerged 1,500 acres (6.1 km2) • Area under reservoir 25,000 acres (100 km2) • Length of KKH submerged 100 km • Proposed new settlements 9 • Infrastructure Electricity, roads, water supply, schools, health centres etc.

Subject to refinement during detailed design stage

Salient Features

• LOCATION: The Dam will be located on the River Indus in Northern Pakistan, about 315 km upstream of Tarbela Dam, 165 km downstream of the Northern Areas capital of Gilgit and 40 km downstream of Chilas.
• MAIN DAM Maximum Height: 270 m Type Roller Compacted Concrete (RCC)
• DIVERSION SYSTEM 2 No. Diversion tunnels 1 No. Diversion canal Upstream and Downstream Cofferdams
• MAIN SPILLWAY No. of gates 9 Size of gate 16.5 Χ 15.0 m
• RESERVOIR LEVEL 1160 m Gross capacity 7,300,000 acre feet (9.00×109 m3) Live capacity 6,400,000 acre feet (7.89×109 m3) Min. operation level El. 1060 m
• OUTLETS Intermediate level 8 Low level 4
• POWERHOUSE(S) 2 Total installed capacity 4500 MW Location and type Toe of the Dam (one each on the right and left side) No. of units 8, each of 560 MW Average generation 16,500 Gwh/year
• ESTIMATED COST (YEAR 2008) US$12 Billion

Total Cost & Capacity of the Project

The cost of the Diamer-Bhahsa dam is $12.6 billion (November,2008) and it will have a storage capacity of 6,340,000 acre feet (7.82×109 m3) as against the earlier proposed 7,340,000 acre feet (9.05×109 m3). However, it will have a power generation capacity of 4,500 megawatts.

A huge amount of Rs 27.824 billion is required for the acquisition of land and resettlement of the people to be affected in the wake of the construction of the dam. Under the proposed project, Rs 10.76 billion will be spent for the acquisition of agriculture-barren land, tree and nurseries and Rs 1.638 billion to be utilised for properties & infrastructure, Rs 8.8 billion for establishment of nine model villages, Rs 62.119 million for pay & allowances for administrative arrangements, and Rs.17.7 million for contingent administrative expenses. The project also includes an escalation cost of Rs 2.234 billion at the rate of 6 per cent per year for five years and interest of Rs 4.309 billion during the implementation at the rate of 9 per cent.

It is expected that the detailed drawings of the dam would be completed by March 2009, immediately after which construction work shall begin.

Discovery of Buddhist artifacts

On April 4, 2008, it was reported in several major South Asian newspapers that Buddhist artifacts, possibly numbering in the thousands, have been recovered at the site of the Diamer-Basha Dam. According to these articles, the beleaguered engineering firm Lahmeyer International, which has been involved in planning out the dam, has suggested a museum be built to house the artifacts. Also, an unnamed German scholar affiliated with a German archaeological university (possibly the German Archaeological Institute) has traveled to Pakistan to study the artifacts.

The Government of Pakistan has now decided to secure and relocate all items of archaeological significance from the areas that will be inundated by the Diamer-Bhasha Dam and its reservoir and to place them in a newly constructed museum near the Dam site.

Source: http://en.wikipedia.org/wiki/Diamer-Bhasha_dam

Pictures I took of the Diamer-Bhasha Dam site between Besham and Chilas on the Karakoram Highway (KKH) on my way to Hunza:

Close-up of the WAPDA board marking the site:

http://i373.photobucket.com/albums/oo172/RMSAzam/Picture511.jpg

Wide-angle view of the board and the site itself:

http://i373.photobucket.com/albums/oo172/RMSAzam/Picture513.jpg

This picture shows the site in the perspective of the valley with the board in the centre (picture is dark because it was taken in the direction of the sun):

http://i373.photobucket.com/albums/oo172/RMSAzam/Picture516.jpg

Board of the Lahore-based company that is constructing the adits (tunnel entrances) and doing the exploratory boring in the hills surrounding the site. Before the dam can be built, Diversion Tunnels will be bored on both sides of the Indus to divert the river from the construction site. These Diversion Tunnels will then be sealed before the dam is opened. It was the incident with the Diversion Tunnels that led to the suicide of the Italian chief engineer when Tarbela was contructed a long time ago (one of the great tragedies of Pakistan's engineering history):

http://i373.photobucket.com/albums/oo172/RMSAzam/Picture518.jpg

The dam site looking northeast. This part of the valley will be submerged under water right up to Raikot Bridge, 100 km north. The good thing is that it is a narrow, desolate rock valley with with almost no agriculture and very little human habitation, approximately 25,000 people in the entire 100 km affected part of the valley - all of whom will be relocated in a new model village being constructed near Chilas. All Buddhist rock carvings located in this valley will be carved out and placed in a museum:

http://i373.photobucket.com/albums/oo172/RMSAzam/Picture519.jpg

This picture was taken with the sun behind me and is facing southwest. It shows the exact location of the dam. The rock jutting out on the right is the place where the dam wall will go up and that rock will be underneath the dam wall:

http://i373.photobucket.com/albums/oo172/RMSAzam/Picture522.jpg

A close-up of the above mentioned rock. This rock is worth $200 million because, according to an engineer, it is going to save Pakistan $200 million in construction costs. It narrows the valley and acts as natural barrier, making it easer and less expensive to build the wall that has to plug this area. It also makes it easier to divert the river as one of the Diversion tunnels will be bored on the other side of this rock. This rock is why this exact site was chosen. The dam wall will be contructed over the centre of this rock:

http://i373.photobucket.com/albums/oo172/RMSAzam/Picture521.jpg

Apart from the Basha, is there any other site where Pak can build a Dam? Just trying to figure out how much of Pak's hydroelectric potential has been utilized so far.

Apart from the Basha, is there any other site where Pak can build a Dam? Just trying to figure out how much of Pak's hydroelectric potential has been utilized so far.

Kalabagh on the Indus River in Punjab is the best site for a mega dam in Pakistan. It remains the No. 1 choice for a mega dam in Pakistan and it was selected as the site of Pakistan's first mega dam in the 1950s. Under pressure from Gen. Ayub Khan, Tarbela was chosen as the site to build Pakistan's first mega dam because it was in NWFP (Gen. Ayub hailed from the NWFP) and it was near Gen. Ayub Khan's village near Haripur. Even if the first mega dam had been built at Kalabagh, Tarbela would still have to be built - so no hard feelings there.

Skardu is also a very good mega dam site but it will inundate Skardu town and the green Skardu valley. Therefore, it is not being considered (at least at the moment).

Sooner or later, mega dams will have to be built at both Kalabagh and Skardu, but this will be after 2020 - Kalabagh Dam in the 2020s and Skardu Dam in the 2030s. I don't foresee Diamer-Bhasha being completed before 2020 as 100 km of KKH also has to be raised before it goes online.

There are may other sites for small and medium-sized dams all over Pakistan.

According to a 2007 World Bank Report, Pakistan has a hydro-electric power potential of almost 54,000 MW, which remains untapped. Pakistan's existing hydro-electric power generation capacity is approximately 6,600 MW, so we've only touched the tip of the iceberg. Pakistan's current energy crisis is a self-inflicted wound through inaction - a case of successive governments - both military and civilian - sleeping on the job.

In my opinion, it is foolish to try and build consensus on mega dams in Pakistan. Like our nuclear programme, Pakistan's energy demands must be treated as a national security imperative, in which consensus is irrelevant. Without energy, our economy will be ruined. We didn't hold a nationwide referendum before embarking on our nuclear programme.

http://siteresources.worldbank.org/SOUTHASIAEXT/Resources/223546-1192413140459/4281804-1192413178157/4281806-1194474073434/SAR_Energy_Trade_Nov_07.pdf

Pak only produces 5,000MW of electricity through hydro? So this Dam would double the Hydroelectric production??

I'm assuming other sites that can be utilized to generate electricity is probably the Chenab, How does the Indian Dam affect Pakistan's prospects of utilizing Chenab?

What a beautiful place! Will all go under water! But that's the price for progress.

Pak only produces 5,000MW of electricity through hydro? So this Dam would double the Hydroelectric production??

I'm assuming other sites that can be utilized to generate electricity is probably the Chenab, How does the Indian Dam affect Pakistan's prospects of utilizing Chenab?

6,600 MW (I updated the figure from a more recent source). Yes, Diamer-Bhasha will almost double Pakistan's existing hydro-power capacity. Kalabagh will triple it.

The Indians say they are withholding water to fill up Baghliar and not diverting it. Under the Indus Water Treaty, India can only construct hydro-electricity projects on the Indus, Chenab and Jhelum rivers, not irrigation projects. Withholding is also not permitted. So, of course, it does have an impact. One thing that is extremely worrying to Pakistan is the possibility of India using underground tunnels to divert Pakistan's waters before the water reaches Pakistan.

I believe if India goes on this path and tries to reduce Pakistan's waters, we may find ourselves in a situation in which Pakistan will have to destroy the Baghliar Dam or any other Indian project that reduces or seeks to reduce Pakistan's water share, even if war is the consequence.

^^Inshallah We wont have to go down that path. Pak has already foregone waters from Ravi/Sutlej/Baes and Indus/Jhelum/Chenab should therefore be respected as Pak waters.

Ultimately Pakistan will have to ask for an installation of water monitoring devices along its rivers. It would be very naive of India to block Pakistan's Waters as China can do the same to Sutlej and Brahmaputra. Even worse for India is they don't have any treaties with China, atleast from what I know.

If India is not allowed to withhold water, why did the World Bank let them construct the Dam in the first place? Surely the engineers must have known for that Dam to generate electricity they would have to withhold water?

Excellent pics and info, Azam :applause:

Great pics and info Azam as usual! :okay:

Source: http://en.wikipedia.org/wiki/Diamer-Bhasha_dam

Some info might be inaccurate at this point, and also the source is Wikipedia, but I will cross-check with more reliable sources later and edit as needed.

@ brightside.

I think that this would be a better source of information on the Diamer-Basha Dam than wiki: http://www.wapda.gov.pk/htmls/water-dams-basha.html You can cross-check & edit your post if needed.

LOCATION:

http://i262.photobucket.com/albums/ii109/traPPed_2008/Diamer-BashaDamsite.jpg?t=1227709853

just looking atthe indian border it is not so clear

there are 2 islamabads on that map :nuts:

there are 2 islamabads on that map :nuts:

You never that before?

there are 2 islamabads on that map :nuts:
That's coz there are two of them.

Two Islamabads?

Two Islamabads?

Its not the only case in the world ...take for example Paris. Everyone knows paris is in France but we have Paris, TX (http://en.wikipedia.org/wiki/Paris,_Texas), Paris KY (http://en.wikipedia.org/wiki/Paris,_Kentucky), Paris TN (http://en.wikipedia.org/wiki/Paris,_Tennessee), etc

^^ I know about Paris, TX and Lahore, VA and Manchester, NH and other such examples...but how did I not know there are two cities with the same name in my country? Where is the second Islamabad? I only see 1 on the map.

never knew there were 2 islamabads, its just under srinagar on the map

Theres a small town called Islamabad too, search for "Islamabad" on Google Earth and it'll take you there, I don't know if they fixed it or not now, but it used to take you to a random town in Punjab.

Great work Azam......!!!!

There are about ten Karachis (same spelling as Pakistan's Karachi) just in Russia. It's possible. Same with several cities in the US with the same name. Usually one is much smaller than the other.

I just don't get it... ten cities with a same name...
that's actually unbelievable..
and there's a Lahore in Virginia too...
wow!

If India is not allowed to withhold water, why did the World Bank let them construct the Dam in the first place? Surely the engineers must have known for that Dam to generate electricity they would have to withhold water?

Under the Indus Water Treaty (IWT), India has to ensure that at least 50,000 cusecs of water flows into the Chenab into Pakistan during summer. Any water above 50,000 cusecs, India can withhold and even divert. India should have used excess water to fill Baghliar. Instead, it withheld 20,000 cusecs of Pakistan's share to fill Baghliar, giving Pakistan only 30,000 cusecs out of the 50,000 cusecs Pakistan is guaranteed under the IWT, thereby ruining Pakistan's summer crops.

there are 2 islamabads on that map :nuts:

Two Islamabads?

^^ I know about Paris, TX and Lahore, VA and Manchester, NH and other such examples...but how did I not know there are two cities with the same name in my country? Where is the second Islamabad? I only see 1 on the map.

never knew there were 2 islamabads, its just under srinagar on the map

:ohno:

There's one Islamabad in IOK (Indian Occupied Kashmir). Though I'm not sure if they recently changed its name to Salamabad or not from Islamabad.

That map is from WAPDA's website.

Theres a small town called Islamabad too, search for "Islamabad" on Google Earth and it'll take you there, I don't know if they fixed it or not now, but it used to take you to a random town in Punjab.

That was a mistake on Google Earth's part. It just directed you to Faisalabad instead of Islamabad.

Under the Indus Water Treaty (IWT), India has to ensure that at least 50,000 cusecs of water flows into the Chenab into Pakistan during summer. Any water above 50,000 cusecs, India can withhold and even divert. India should have used excess water to fill Baghliar. Instead, it withheld 20,000 cusecs of Pakistan's share to fill Baghliar, giving Pakistan only 30,000 cusecs out of the 50,000 cusecs Pakistan is guaranteed under the IWT, thereby ruining Pakistan's summer crops.

:mad2:

^^ I know about Paris, TX and Lahore, VA and Manchester, NH and other such examples...but how did I not know there are two cities with the same name in my country? Where is the second Islamabad? I only see 1 on the map.

The second islamabad is in Gujranwala :)

The second islamabad is in Gujranwala :)

lol...that's probably "islamabad colony"

What a beautiful place! Will all go under water! But that's the price for progress.

The dam's maximum listed height is 270 meters = 885 Feet! That's higher than Hoover Dam (730feet). My guess is that a lot of the valley will go underwater.

http://www.visitingdc.com/images/hoover-dam-directions.jpg

www.diamerbhasha.com


Overview Plan Of the Project:

http://www.geotauaisay.com/wp-content/uploads/2009/08/bhasha_dam-1024x760.jpg

Siteview:

http://www.geotauaisay.com/wp-content/uploads/2009/08/hunzatimes-basha-91.jpg

one of the best posts.... thanks anees....i have been to the site at least 4 times (2007). even at that time there was quite a set up of men and machines. the locations is awestrucking one...too pretty.

i had a lot of pics... but, they are all in the pc back home. :( in any case , they are 3 years out dated now.

please, keep sharing. thanks every one.

has anyone seen the actual renderings of this dam?

Construction will start in October, 2010 & the estimated completion time is Dec, 2017........

Work on Basha, 12 other dams to begin this year



Tuesday, January 26, 2010
LAHORE: Federal Minister for Water and Power Raja Pervaiz Ashraf said the government had decided to start work on the Basha dam and 12 other small and medium-size dams in the four provinces with a view to controlling the energy crisis.

He was speaking at the 66th national general council meeting of WAPDA employees at Labour Hall here on Monday. WAPDA Chairman Shakeel Durrani, General Secretary Pakistan of WAPDA Hydro Electric Labour Union Khurshid Ahmed, and other labour leaders, including Latif Nazamani, the representative of the International Labour Union, and a large number of workers were also present.

The minister said despite meagre resources and huge spending on the war against terrorism, the government had launched the Benazir Income Support Programme and given shares to employees in public sector industrial units in the country.

He also accepted a demand of LESCO employees for an additional salary. “One extra salary has already been given to them,” he added. The minister said he had announced the incentive of additional salaries to distribution companies (DISCOs) to acknowledge their efficiency and performance.

The minister announced to increase the job quota of WAPDA employees’ children from 20 per cent to 33 per cent. The minister said the government was fully aware that energy and power shortages were big problems for all sectors of the economy and all segments of the society. He said there was no option but to hire rental power plants (RPPs) to meet power demand, but critics of the government created an atmosphere against the import of RPPs by levelling allegations of corruption.

“The government had to refer the project to the Asian Development Bank for third party evaluation and its report has been received,” he added.

Ashraf said the government would use all possible options to curb power crisis in the country, including short-term, medium-term and long-term projects in the interest of the nation. The WAPDA chairman encouraged the workers for their dedication and commitment.

i think in October 2010

ISLAMABAD : Minister for Kashmir Affairs and Gilgit-Baltistan Mian Manzoor Ahmed Wattoo said Tuesday that Prime Minister has assigned the special committee constituted regarding compensation and resettlement of Bhasha dam affectees the task to resolve the issue of compensation and re-settlement.

The minister was addressing a joint press conference along with Qamar Zaman Kaira,Minister for Information and Broadcasting and Governor Gilgit-Baltistan here after the meeting of the committee.

Chief Minister Gilgit-Baltistan Syed Mehdi Shah and chief secretary were also present during the press conference.

Wattoo said the committee would resolve this issue amicably at the earliest. He said that Federal Government reaffirms its commitment to construct the Dam without further wastage of time in best national interest with total cooperation of people of Diamer and Gilgit-Baltistan.

He further said that the issue of compensation would be taken up not only as a land acquisition exercise but also as an initiative for creating goodwill among the local people. Economic development of the area would be the guiding principle during and after the construction of the Dam, he added.

Information and Broadcasting Qamar Zaman Kaira said that Gilgit-Baltistan Council would be constituted soon and the Finance Ministry has released Rs 5 billion for this purpose. He said after its constitution, the GB Chief Minister would select his cabinet.

He said that Bhasha dam would prove a major milestone in national economy which would provide cheap electricity to the nation. To a question, Kaira said that law and order situation in Gilgit-Baltistan was ideal and the people of the area were patriotic.

Kaira said that project of Diamir-Bhasha dam was of national importance and its construction work would start from July or August this year and take around 8 to nine years to complete.

He said that government is committed to overcome energy crisis and the plan of 4500 megawatt Diamir-Bhasha dam projects manifests that people of Gilgit-Baltistan would be given their rights as given by the present government to the people of other provinces including Azad Kashmir.

On the issue of compensation, Kaira assured that the government would do justice with the affectees of this project and the justified rate of their land would be given.

He said the sub-committee constituted has been given time frame to present its report on the matter of compensation to the affectees before March 1.

The report would be submitted to the main committee which would meet on March 1 to finalize the compensation in the light of the findings.

"We have given rights to the people of Gilgit-Baltistan and on the matter of compensation of land they would be accommodated in all justified terms", he said.

A sub-committee was formed under the Chairmanship of Chief Minister, Gilgit- Baltistan, with Secretary KA&GB Division, Secretary Water and Power Division and Chief Secretary, Gilgit-Baltistan as member to discuss the rates of compensation with the affectees. The report of the sub-committee will be presented in the meeting of the Ministerial Committee to be held on 1st March, 2010.The sub-committee will hold proper negotiations with the affectees. Transparency will be maintained at all cost.

:cheers:

^^Lets hope it will start as it is being on the proposed dam from the last 5-6 years.......

nahi banay ga yai bhi....

^^
New spamming tactics? :|

We should be patient because it is a Rs. 820 billion project......:yes:

nahi banay ga yai bhi....

Patience Mere dostt!

Patience Mere dostt!

Stop spamming more than patience.......:yes:

http://www.flickr.com/photos/50841613@N08/46

Hopefully, they will start this project in July....

Project requires $12 billion funding

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.

The World Bank has refused to fund the Diamer-Bhasha Dam due to, what they claim, is the controversial legal status of Gilgit-Baltistan territory.

The revelation was made by Water and Power Development Authority (WAPDA) official who was briefing the National Assembly’s Standing Committee on Inter-Provisional Coordination on Friday.

The committee meeting was chaired by Mir Ahmedan Khan Bugti and discussed existing water sources and proposals for building new dams.

Briefing the committee about the status of the Diamer-Bhasha project, the WAPDA official informed the committee that due to objections raised by India over the legal reforms introduced in Gilgit-Baltistan, the World Bank had refused to finance the project.

The committee was further informed that over $30 to 40 billion would be required in the next 15 years to build dams in the country for generating electricity and for increasing water storage capacity.

“The bank’s refusal to provide funds has virtually endangered the practicability of the Diamer-Bhasha Dam on whose feasibility and technical reports huge amounts have already been spent since 2006,” sources privy to a high-level meeting later told Daily Times.

“The total cost of the Diamer-Bhasha dam is $12.6 billion (according to estimates in 2008) and it will have a storage capacity of 6.3 million acre feet of water. It will have a power generation capacity of 4,500 megawatts,” the sources said.

IRSA: Shafqat Masood, the Indus River System Regulatory Authority (IRSA) acting chairman, briefed the committee about the differences between Punjab and Sindh over Indus water distribution.

He told the committee members that the Chashma-Jhelum Link Canal had not yet been opened due to objections raised by provinces. However, he said IRSA had increased the water share of Sindh to 190,000 cusecs.

What the F! Pakistan must get this done, through applying pressure which it can through its allies.

The Council of Common Interests (CCI) which met under the chairmanship of Prime Minister Syed Yusuf Raza Gilani on Sunday at Prime Minister House unanimously passed a resolution approving the construction of Diamer-Bhasha Dam. The resolution reflects national consensus, said the Prime Minister, and would send a positive signal for the future progress and prosperity of the country.The CCI was apprised that the Diamer-Bhasha Dam on completion in 2019, would have the water storage capacity of 6.4 MAF and would produce 4500 MW of electricity.
It was also mentioned that the dam would pay back its cost within eight years after its completion.
Concluding the meeting, the Prime Minister gave special directions to the Ministry of Water & Power to develop a scheme for development of infrastructure to support the early completion of Thar Coal Project.
He further directed that the Ministry of Railways give detailed briefing on making Railways a viable entity and also asked the Statistics Division for briefing on the Population Census in the next meeting of the CCI.
The CCI which met for the first time after the passage of 18th Amendment took up five agenda items and passed the rules and procedures for the newly constituted CCI.
As per the Constitution, the CCI was required to meet within the prescribed timeframe of 90 days after the enactment of 18th Amendment.
The CCI was given a detailed briefing by Mian Raza Rabbani, Chairman Implementation Commission on the stage of implementation of 18th Amendment and the work so far undertaken by the Commission.
The meeting took note of the NEPRA’s Annual Report 2008-09 and the Statement of Industries Report 2009.
The Council constituted a Sub-committee to submit its report within one month on the working and functioning of NEPRA within the constitution.
The said sub-committee comprises Syed Naveed Qamar, Minister for Petroleum & Natural Resources, Arbab Alamgir Khan Minister for Communications, Mir Humayun Aziz Kurd, Minister for Livestock and Dairy Development and Mian Raza Rabbani.
The four Chief Ministers of the provinces shall also name their nominees for the said committee.
As regards Intellectual Property Organization’s summary seeking provincial support for implementation of Intellectual Property Rights, the Council directed that the summary be resubmitted after consultation with the provinces incorporating appropriate proposed changes in the law.
The meeting was attended by all its members including: Chief Minister Punjab Mian Muhammad Shahbaz Sharif, Chief Minister Sindh Syed Qaim Ali Shah, Chief Minister KPK Ameer Haider Khan Hoti and Chief Minister Balochistan Nawab Muhammad Aslam Raisani, Syed Naveed Qamar Minister for Petroleum & Natural Resources and Mir Humayun Aziz Kurd Minister for Livestock & Dairy Development. Mian Raza Rabbani attended the meeting as special invitee.

What the F! Pakistan must get this done, through applying pressure which it can through its allies.

The current government has restricted its delegations and relations with Pakistan's allies. The closest ally they have right now is probably the US, which most likely won't provide financial assistance.

They need to push this ASAP.

Federal government has released an initial amount of Rs 700 million to WAPDA for acquisition of land in Gilgit-Baltistan for construction of the dam. The amount has been handed to Deputy Commissioner, Diamer for the purpose.The ground-breaking ceremony of WAPDA offices and colonies of the dam is expected next month. This was stated in a meeting between Gilgit-Baltistan Chief Minister Syed Mehdi Shah and WAPDA Chairman Shakil Durrani, who visited the project site, according Wapda spokesman here Monday.The Chief Minister referring to water and hydropower potential of Gilgit-Baltistan, said that development of these resources by constructing Diamer Basha and other projects would not only play a pivotal role for strengthening the national economy but also pave the way for socio-economic uplift of the area.
WAPDA Chairman said that Diamer Basha dam, the largest project ever executed in the country’s history, would store 8.1 million acre feet (MAF) water and generate 4500 megawatt (MW) of low-cost hydel electricity on completion. In addition to providing water for agriculture, the project will also contribute 18 billion units of electricity per annum to the national grid, he added.
Besides Diamer Basha dam, Satpara, Bunji, Dasu, Shyok and other water & hydropower projects, located in GB, were also discussed in the meeting. The Chief Minister assured that GB government would extend optimum support and cooperation to WAPDA in execution of projects in the area.
The Chairman also presented a cheque of Rs 500,000 to the Chief Minister as additional donation for the flood/rain victims in the Chillas area. WAPDA has already spent about Rs 2.5 million on the relief activities in the areas adjacent to Diamer Basha Dam project and provided a cash donation of Rs 50 million.
During his two-day tour, Durrani also visited Bunji hydropower project as well as Shyok and Satpara dams. Senior USAID officials also accompanied him during the visit.
The General Managers concerned briefed the Chairman of the progress made on the projects. It was told that feasibility study of 7100-MW Bunji hydropower project had already been completed, while seismic studies and detailed engineering design of the project would take another 18 months.
The main dam of Satpara project is complete and consequently, the reservoir was filled up to 85% of its capacity this summer. The construction work on the irrigation system and power house 3&4 is underway, it added. The Chairman directed that remaining works of Satpara dam project be completed in the shortest possible time in view of its significance for the area, as it would irrigate more than 15,500 acres land in Skardu and its suburbs and generate about 17 MW hydel electricity.
The Chairman was briefed that Shyok dam, with an estimated gross storage capacity of 7.2 MAF, located on River Shyok, 59 kilometre upstream of Skardu, had been included in part III schemes of WAPDA’s Vision 2025.

ECC allows WAPDA to raise Rs 20bn thru TFCs, Sukuk bonds

The Economic Coordination Committee (ECC) of the Cabinet on Thursday allowed the Water and Power Development Authority (WAPDA) to raise Rs 20 billion from the market through Sukuk bonds and Term Finance Certificates (TFCs) to expedite construction work of the Diamer Bhasha Dam.

According to official sources, the government would provide the necessary guarantees while WAPDA would raise the amount from the market and later repay it through its own resources. WAPDA employed the same mechanism to raise Rs 8 billion in 2006 and Rs 8 billion in 2007 through Sukuk bonds for the project and is currently servicing them. The meeting was informed that additional financing was required to kick-start the actual work on the project as the government had made an allocation of Rs 15 billion for land acquisition in the current financial year’s Public Sector Development Programme. The cost of 4,500 megawatts Diamer Bhasha Dam is estimated at $13 billion, and so far international financial institutions have not made any financing commitment for the mega project.

* ADB assures of technical, financial assistance

The Asian Development Bank (ADB) on Saturday assured Pakistan of financial and technical assistance for the Diamer Bhasha Dam project and said that the process of finalising the modalities would be completed on fast-track basis.

This assurance was given by the ADB Acting Country Head Donneth A Walton during a meeting on Saturday at the ministry under the Chairmanship of Minister for Water and Power Raja Pervaiz Ashraf to review the progress and other related matters of the project.

The meeting was also attended by the ministry’s secretary, adviser and additional secretary, WAPDA Chairman Shakeel Durrani, member, Planning Commission member (infrastructure), Bhasha Dam project general manager and other senior officials of the ministry, Kashmir affairs division, WAPDA and ADB.

The ADB delegation informed the meeting that the bank is already in the process of due diligence of the project and all the aspects of this very important hydel power generation project have been included for assistance. The minister while chairing the meeting highlighted the importance of the project in the national development and said it will be a multipurpose project, play a vital role in flood mitigation and open a new era of economic development and prosperity in Pakistan.

Ashraf said that after completion, the dam will generate cheaper electricity of 4,500 megawatts with live storage capacity of 6.4 million acres feet to irrigate thousands of acres. He said that the life of Tarbela dam will extend about 35 years after completion of the Bhasha Dam. He said that Pakistan is facing an energy crisis challenge and taking all possible measures to mitigate it. The minister said that the government is also working on various other hydel power projects to reduce dependence on thermal power and generate cheaper and clean electricity to meet the future electricity needs. He said that the government is very enthusiastic and the people of the area are very keen for early construction of the project. He said that WAPDA has started implementation of the resettlement plan and land acquisition.

Earlier, the WAPDA chairman briefed the meeting about the current status of the dam, allocation of funds by the government during 2009-10, sanctioning of Rs 20 billion for the 2010-11, establishment of land acquisition and resettlement unit in WAPDA, land acquisition in Gilgit-Baltistan and Khyber Pakhtunkhwa, upgradation of KKH, three years resettlement plan and other related matters.

Minister for Water and Power Raja Pervaiz Ashraf said on Tuesday that the Diamer-Basha dam would be completed in seven years, which would produce 4,500MW electricity.

Replying to a question in the in the Senate during question-hour session, the minister said that the Diamer-Basha project was of great national importance. He said the process of land acquisition had started and this would continue for three years.

Pervaiz Ashraf said so far Rs. 792 million had been spent out of Rs. 1 billion, allocated for the land acquisition. He said around 25,000 people would be affected on account of the construction of the dam and land for their resettlement had also been acquired.

"We have taken all those who would be affected people on board and acquired land for their resettlement in accordance with their wishes," he said.

He said the people to be affected were fully satisfied with the arrangements made for their resettlement and desired the project be completed.

Pakistan has formally requested the USA to provide $7.5 billion for 40 development projects, including the Diamer Bhasha Dam, under the Kerry Lugar Law (KLL). The funding for this crucial hydropower project may be made part of financing plan for the next financial year 2011-12, it has been learnt.

Initially, Islamabad made a request for 39 development projects with estimated cost of over $12 billion and Bhasha Dam was not part of that wish list. “But recently, Pakistan made a fresh request to include construction of this mega project as part of $7.5 billion funding coming over the next five years in shape of KLL,” one of the top officials of economic team revealed while talking to a select group of journalists here on Thursday.

Dwelling upon the lingering controversy over Raymond Davis episode that harbours the potential of derailing bilateral ties between the two countries, the official confided that John Kerry during his latest visit to Pakistan asked the concerned authorities about specific measures required to be taken by Washington to end this confrontational atmosphere between the two countries.

He said that Pakistan forwarded 40 projects of four major areas including energy, food security, human resource development and others.“If USA agrees to provide much less amount even $5 to $10 million for construction of $11.5 billion Bhasha dam it will help to lure other multilateral and bilateral donors in a great way,” the official added. He said that the Asian Development Bank (ADB) had asked the government to evolve consensus on Diamer Bhasha Dam among the federal government, four provincial governments and Northern Areas and also made payments for land acquisition. The Council of Common Interest has granted its approval for Bhasha dam and payment of compensation for land acquisition is also underway, he maintained.

When asked about the slow release of funds under KLL, the official said that the process of donor funded projects took more time as completion of mechanism starting from opening up assignment account, arrangement of counterpart funds in Pak rupee and proposal for request (RFP), bidding and many other hectic requirements consumed a lot of time. “It is an achievement that USA has agreed to provide around $874 to $900 million through government’s sponsored agencies and ministries concerned out of total $1.5 billion per annum under KLL,” he further said.

He said that USA had provided $180 million during the last financial year that included $75 million for Benazir Income Support Programme (BISP), $45 million for HEC and $65 million for Malakand IDPs. During the ongoing financial year, USA has provided $60 million for Post Flood Recovery and was going to provide $190 million for Citizen Damage Compensation of flood affected areas. Pakistan and USA have also assigned $40 million for Gomal Zam dam and $26 million for Satpara dam and these funds are expected to be released soon. He said that the government had estimated to receive around $4 billion during the current fiscal year but it is likely to face a shortfall owing to Islamabad’s inability to arrange counterpart funding in the wake of financial constraints.

I don't think that's a great idea, on the other hand, this may be the only way to kick start the project. The US should agree to provide at least $1 billion.

http://www.dawn.com/2011/04/04/us-pledges-500m-for-bhasha-dam.html

ISLAMABAD: The United States has agreed to provide more than $500 million for the construction of Diamer-Bhasha dam to encourage multilateral institutions like the World Bank to become part of the lenders’ consortium taking up the multi-billion-dollar project. A senior Wapda official said the discussions between the US and Pakistani authorities had already begun to finalise the size of the financing and the mode of US participation in project development. He said the US assistance for the project would be a combination of investment and grant financing it had committed to under the Kerry-Lugar-Berman Act.

The Diamer-Bhasha dam has already been delayed by more than five years and its cost has more than doubled. The project was taken in hand as part of the five mega dams proposed by former president Pervez Musharraf and it was to be completed in 2016. The dam’s cost was put at $6.4 billion (Rs400 billion) at the time. The cost has now been revised to $11.2 billion (Rs953 billion) and its completion date extended to 2021, which may be extended further as economic indicators change during the course of project implementation.

An official of the USAID confirmed to Dawn that the US authorities were currently studying the Diamer-Bhasha dam documents provided by Wapda chairman Shakil Durrani and an exchange of additional information was taking place with the economic affairs division. “We have been told that the US would support the Bhasha dam project in a big way,” the USAID official said. The official did not agree with the contention that Wapda had sought about $1 billion for the project, saying Wapda chairman had been reasonable in expecting US funding which could be anywhere between $400 million and $750 million. Normally, a US contractor has to become part of any project in Pakistan to provide funding, he said.

But more than the size of the funding, the US participation and support for the project would be crucial because it would send a positive signal to other multilaterals, most importantly the World Bank, to open a financing line to a project critical for Pakistan’s energy and water needs. The World Bank had earlier declined to fund the project because of its location and some unresolved constitutional interpretations. “When the US is funding a development project, the World Bank can hardly stay away,” an official said, adding the US energy department and other relevant quarters had given a go-ahead.

Pakistan has been seeking US support and investment for the $11.2 billion dam in order to encourage international lenders to finance the mega project. A part of the financing could be channelled through energy development fund (EDF) that the US has been trying to create with the cooperation of bilateral and multilateral lenders as part of the Friends of Democratic Pakistan initiative.

The Diamer-Bhasha dam will have a designed live water storage capacity of about 5.8 million acre feet (MAF) and power generation capacity of 4,500MW. The government wants an investment of about $3.7 billion in foreign exchange for the project.With Pakistan reaching the threshold of water-scarce countries, the government has already finalised a Rs40 billion out-of-court agreement with 30,000 families to be affected by the proposed dam. Pakistan’s per capita water availability, which was more than 5,000 cusecs in 1950, has come down to 1,000 cusecs per day because the nation has not been able to build a dam in almost four decades, according to a senior Wapda official.

In January this year, the Economic Coordination Committee of the cabinet allowed Wapda to raise Rs20 billion through term-finance certificates (TFCs) and Islamic Sukuk bonds for the dam to establish housing colonies and access roads to the project site and related infrastructure. The Asian Development Bank had already agreed to provide long-term loan to help the government meet the foreign exchange component of the project but exact size of the funding is yet to be finalised. The project seems to be viable and could offer up to 18 per cent return on investment, which means that all the investors and lenders could recover their investments within five years after completion.

At least their commitment is something. It should help start the construction in a year or two hopefully.

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In a welcoming development, Washington has decided to come forward to bailout, in a big way, the water-stressed Pakistan from the fast diminishing water availability. To this effect, US Secretary of State Hillary Clinton, during her visit to Pakistan sometime in May, is likely to announce the financial assistance amounting to $100-200 million for the Diamer-Bhasha Dam, a senior official at Economic Affairs Division (EAD) told The News.

Sensing the bitter reality that Pakistan is in serious water problems because of the incessant surge in population and the failure in building major reservoirs, the US has decided to help build Pakistan the major reservoir to increase the water storage capacity to meet the future demand of the burgeoning population.

The officials said the US would provide funding from the Kerry-Lugar-Berman Act, which pledges $7.5 billion in aid over five years.

After completion of the Diamer-Bhasha Dam with storage capacity of 7.3 million acres feet (maf), the country would also be able to generate 4,500MW of electricity.

The announcement from US will help generate funding for the mega project from the donor agencies, particularly from the World Bank, which has refused to provide financing, pleading that the said dam is being constructed on the controversial territory as New Delhi claims that this part of the world, wherein this project is being made, belongs to India.

The World Bank’s argument carries no weight as it had provided funding for the Mangla Dam that built in territory of Azad Jammu and Kashmir (AJK), despite the fact that India also claims that AJK is a disputed territory between the two countries. It is pertinent to mention that India had also provided the funding for the Mangla Dam.

Once the US announces the financial assistance for the dam, the World Bank will follow the suit and provide the funding and this will provide the substantial financial solace to Pakistan to complete the project. The Diamer-Bhasha Dam needs $11.8 billion to get completed and Manila based Asian Development Bank has committed to providing funding amounting to $5 billion for the project.

According to the latest official document of Wapda on water challenges in Pakistan, available with The News, drastically plummeted by 80.2 percent from 5,260 cubic metre to 1,038 cubic metre while the threshold value stands at 1,000 cubic metre per capita.

“So much so, the agriculture productivity has also alarmingly reduced because of the water scarcity and its contribution towards the GDP has lowered by 21.8 percent of GDP.”

The document further says that underground water is fast depleting as the annual extraction of water has swelled up to 51maf of water.

The startling disclosure has also been unearthed in the document about massive increase in population also by 406 percent from 34 million in 1951 to 172 million in 172 million.

“Pakistan is also feared to get exposed to massive increase to 204 million population in 2020 that will further surge up to 221 million in 2025.

“These disclosures are the eye opener for the government planners in water and population sector who have miserably failed to increase the water availability by constructing more dams and contain the population.”

The document also discloses that Pakistan has lost its capacity to store water by 4.18 million feet of water (27 percent) from 15.75 to 11.57maf in the wake of sedimentation which is close to one Mangla Dam as 4.54maf is stored in the said dam.

It says that the Tarbela was built in 1976 with storage capacity of 9.69maf that has reduced to 6.77maf by 30 percent (2.92maf). The Mangla Dam was erected in 1968 with water storage capacity of 5.34maf that has gone down to 4.54maf by 15 percent (0.80maf).

The Chashma Barrage was built in 1971 with capacity to store 0.72maf water. Its capacity has now plummeted to 0.26maf by 63 percent (0.46maf) because of the sedimentation.

With construction of the Diamer-Bhasha Dam, Pakistan will attain the storage capacity that it had in 1978, as the country has so far lost 30 percent, the capacity to store water in Tarbela, Mangla reservoirs and in Chashma Barrage because of the continuous piling of the silt and sedimentation.

“The construction of the mega dam will be completed in next 7 to 8 years and by the completion of the reservoir, storage capacity would further dwindle. “This means after eight long years, Pakistan will harness (sic) the water storage capacity that it had in 1978,” the official at Ministry of Water and Power maintained.

* Federal water and power minister says no issue of funding for $11 billion dollar project in initial phases

The ground-breaking ceremony of Diamer-Bhasha Dam would be held in next few weeks, Minister for Water and Power Naveed Qamar informed the National Assembly (NA) on Tuesday.

Responding to a call attention notice of MQM’s legislators, the minister said that at the moment there was no issue of funding for the estimated $11 billion dollar project, however, financial help would be sought from the international financial institutions in the next stages of the project.

Terming the project vital to meet the power shortage in the country, he told the house that it would take around eight years to complete. He said that being the largest project of the country, it has across-the-board support of the provinces and the political parties. Dispelling the impression of any hurdles in the way of this project, he held that work on the dam was very much on track and it would be completed on time.

http://tribune.com.pk/story/176029/energy-boost-adb-offers-4-5b-for-diamer-bhasha-dam/

ISLAMABAD:
The Asian Development Bank (ADB) on Wednesday formally conveyed to Pakistan that the bank will give $4.5 billion for the construction of Diamer-Bhasha Dam to address the issue of water storage capacity and boost hydropower generation capacity.
The formal commitment was given by ADB’s Director General Central West Asian Department Juan Miranda at the conclusion of a two-day visit to Pakistan. He, along with his delegation, held meetings with economic managers, helping to ease tense relations due to the government’s handling of the flood-related $2 billion aid package offered by the bank.
Both the sides termed the visit “very productive” that bridged the differences that had emerged over the last 10 months.
The ADB delegation supported Pakistan in its efforts to construct Diamer-Bhasha Dam and agreed to take steps in this regard. Earlier, the bank had linked dam financing to a consensus resolution from parliament – a condition met by obtaining approval from the Council of Common Interests comprising representatives of both the federation and provinces.
The entire amount will not come in advance instead the releases will depend on the pace of construction. The government is expected to perform the groundbreaking ceremony of the dam very soon. It has allocated around Rs19 billion for the purchase of land in the next financial year.
The dam will have the capacity to store 8.1 million acre feet of water and generate 4,500 megawatts of electricity. The United States has also indicated that it may provide $250 million for the dam, a figure which is insignificant when compared to the total cost of $11 billion but is important to win financing from other international lenders.

Published in The Express Tribune, May 26th, 2011.

good news. Since ADB approved funding now they should speed up the construction.
Govt. should give priority to this project by allocating some funds on their own and show some more interest in this project. Words should match their actions

US considering to assist in Diamer-Bhasha dam construction

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The United States is considering a Pakistani request to the international community to support the construction of Diamer-Bhasha Dam.

Replying to a question, a state department spokesperson said that the US recognizes that such a hydroelectric project would help meet many of Pakistan's long term energy and water needs, and advance social and economic development in the country.

"We are considering how we can best support Pakistan's request, as are other bilateral donors and multilateral financial institutions. No final decisions have been made. We will continue to work with the Government of Pakistan to determine how best to use U.S. civilian assistance" the spokesperson said.

She said that the United States has long supported development projects that enhance the daily lives of people throughout the region. In doing so, the US always take into account a project's potential regional impact.

The spokesperson pointed out that as part of a broader signature energy program announced in 2009, the United States has provided support to complete the final phases of two hydroelectric dams in Pakistan: the Satpara Dam in Gilgit-Baltistan and the Gomal Zam Dam in South Waziristan.

"We are considering doing more in the sector", the spokesperson added.

ADB considers options to finance Diamer-Bhasha Dam

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The ADB also agreed to provide counter guarantees to investors for investing in wind power generation projects in Pakistan, Mirzanda said.

Asian Development Bank (ADB) is considering various options to finance multi billion dollars Diamer-Bhasha Dam project. This was said by Jaun Miranda, Director General while talking to the Federal Minister for Water and Power, Syed Naveed Qamar here today. A three member ADB delegation called by him here on Thursday. The ADB also agreed to provide counter guarantees to investors for investing in wind power generation projects in Pakistan, Mirzanda said.

The wind power generation projects will generate cheaper electricity in the country. Miranda said that the bank is already providing financial assistance for power distribution enhancement project and will continue its support for the project in order to improve energy efficiency. The transmission and distribution system and energy loss reduction programme is also being funded by ADB for all DISCOs and Mirzanda said that the bank was ready to expand its funding for replacing obsolete distribution networks.

The bank will provide financial assistance for free distribution of 30 million energy saver bulbs (CFLs) in the country. These energy savers will help reducing peak-hour demand by over 1,000 MW. He also said that the bank will fully support the energy conservation initiatives of the government.

The Minister for Water and Power appreciated the role of ADB for improvement in energy sector and said that the support of the bank for energy efficiency programme will help to save the energy and reduction in the transmission and distribution losses.

The minister also thanked for providing counter guarantee facility for wind power projects. The minister also briefed the delegation regarding new energy sector improvement initiatives like Operation and Maintenance contract of Gencos through the private sector and conversion of existing IPPs to cheaper fuels. He also asked ADB to finance mega water and power sector projects to end the crises in these sectors.

The ADB director also discussed the current status of power sector reforms, energy efficiency programmes, central power purchasing agency, and independence of Discos. The Minister also assured that all the efforts will be made to timely complete the existing projects being funded by ADB.

US support for Pakistan dam could help stem flow of bad blood

Washington weighs up backing huge Daimer Bhasha project as a means of improving battered relations with Pakistan

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The US is considering financial support for a $12bn dam in Pakistan (http://www.guardian.co.uk/world/pakistan) in an attempt to improve its battered image in the country.

The Daimer Bhasha dam would provide enough electricity to end Pakistan's crippling shortages. It is said its reservoir would hold so much water (http://www.guardian.co.uk/environment/water) it could have averted last year's devastating floods.

Washington has not yet made a final decision on partial funding of the dam, but US money would be crucial in securing other international finance, especially from the Asian Development Bank.

"Getting involved in a long-term project like this is very compelling for us," said a senior US official. "This is the project we're spending our time assessing.

"This would demonstrate that Pakistan is the kind of country where you can do large, complex infrastructure projects. It's not all flood relief and sacks of flour."

At the end of last week, President Asif Ali Zardari met a team from the Asian Development Bank "to start the process of financing Daimer Bhasha dam as the project has been approved at all internal fora of the country", according to a statement from his office.

Although Washington is Pakistan's biggest international donor by far, the support has done little to improve perceptions of the US, which is seen as the enemy by many Pakistanis – a view exacerbated by continuing drone attacks in tribal areas and the killing of Osama bin Laden earlier this year. The dam, which harks back to similar projects supported by Washington in the 1960s and 1970s, could help reset relations between the two countries.

India is likely to object to US support for the dam, as it is located in the disputed Kashmir (http://www.guardian.co.uk/world/kashmir) region. Opposition may also come from critics in the US Congress, who have called for all aid to be cut off after Bin Laden was found hiding in Pakistan.

The dam, on the Indus river, would provide 4,500MW of cheap, green energy (http://www.guardian.co.uk/environment/energy), making up for a shortfall causing up to 12 hours of power cuts a day across Pakistan. The reservoir would be 50 miles long.
Shakil Durrani, chairman of the water and power development authority, said Islamabad had approved the dam project and he was confident of US backing.

"If we had a reservoir the size of Daimer Bhasha the floods last summer would not have occurred," he said. "This would be the largest project ever undertaken in Pakistan. It is our top priority."

Analyst Mosharraf Zaidi agreed the dam could boost relations. "The overwhelming aid transfers from the US have been to the military and whatever little has come for the civilian sector has not developed as far as the rhetoric has," he said.

"Daimer Bhasha would be tremendously good for Pakistan and would show that the US is invested in a long-term relationship with Pakistan, no matter how bad things look today."

US aid to Pakistan increased to $1.5bn a year under the Obama administration, but has been widely dismissed in the country as going mostly to consultants and lacking focus. It remains unclear how much of this cash has actually arrived in Pakistan since the new aid programme began in 2009.

"US aid is neither visible nor tangible," said Tariq Fatemi, a former Pakistani ambassador to Washington. "Unless the people of Pakistan can identify large, visible projects that make a difference to people's lives, the US is not going to get the kind of appreciation that it believes it deserves."

The US official said Washington had spent $2bn on civilian assistance since October 2009, including $550m on flood relief last year, though that came from a separate fund.

Daimer Bhasha would take around eight years to build. Pakistani authorities plan to shortlist contractors later this year.

The Indian embassy in Islamabad pointed to a statement issued by the Indian government in 2006, after the project was first proposed, which insisted that the dam was "in territory that is part of the State of Jammu and Kashmir, which is an integral part of India by virtue of its accession to it in 1947".

Relations between the US and Pakistan have been plagued by accusations in Washington that Islamabad is playing a "double game" by supporting Afghan insurgents, while Pakistan believes it has been bullied into acting against its own interests.

The unilateral US raid that killed Bin Laden in May humiliated Pakistan's powerful military, all but halting anti-terrorism co-operation between the two countries.

http://www.guardian.co.uk/world/2011/aug/29/us-pakistan-dam-funding

Western troops have to leave Afghanistan during the construction of this dam (if its being partially/substantially funded by US) for relations to improve because of their finanacial support. I had read that the US army might stay in Afghanistan until 2024 :crazy:

When is it scheduled to be built and go online?

Western troops have to leave Afghanistan during the construction of this dam (if its being partially/substantially funded by US) for relations to improve because of their finanacial support. I had read that the US army might stay in Afghanistan until 2024 :crazy:

Pakistan will build this dam with or without US help.

Pakistan will build this dam with or without US help.

Insha'Allah

Got an opportunity yesterday to visit Hydel research station WAPDA located near Gujranwala at Nandipur. Real time models of all the completed and proposed dams have been constructed there. Spillways, river paths, underground tunnels, water reservoirs , access roads etc everything has been modeled. Here are some pics that I took of the model for Diamer Basha dam.

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Impressive!

oh nice.. so its not just in papers. they've been workin on it for long..

Is it open to public?

Is it open to public?

It was open to public but no more now, you can only enter if you have reference of any engineer inside or even the security guards, the whole area around this research station belongs to army and there are huge bases and training grounds. So security is always on a high alert here.

Impressive model. Seems promising enough.

Finally...

Foundation laying stone of Diamir Bhasha dam on Oct 18: PM

Prime Minister Syed Yusuf Raza Gilani Friday said that foundation laying stone of Diamir Bhasha dam will be held on October 18. He said that it was a mega project and the government brought it in the Council of Common Interest (CCI) to take approval of all the stakeholders so that it could not be politicized like Kala Bagh dam.

He said the meeting of CCI was attended by the four chief ministers and they approved the project unanimously, adding that the Diamir Bhasha dam was a dream of Shaheed Mohtarma Benazir Bhutto and the PPP-led government was committed to materialize it.

The Prime Minister expressed resolve that all the mega projects including Diamir Bhasha Dam, Thar coal, Lowari Tunnel, Neelum-Jehlum, Mangla uprising and others would be completed by the government. He said the PPP-led government launched unprecedented mega projects throughout the country for its prosperity and uplift of the people.

2025 ???
Is this Completion date?? so What is starting date?

2025 ???
Is this Completion date?? so What is starting date?

Dode.. this is a "dam" not a building :bash:

2025 ???
Is this Completion date?? so What is starting date?

In the first post, it is written that the work on the dam was supposed to begin in 2009 and finish by 2016. Since it has now been delayed to virtually 2012, i think we should have it by 2019, Inshallah.

2025 is WAPDA Vision plan, the comprehensive long term plan for future energy generating projects including this one.

^^
You join M.P To Tell This:)
Thanks 2019 not bad:)

Oct 18th eh?

Insha-Allah this project can lead Pakistan's future. Must be done on a war footing.

http://www.express.com.pk/images/NP_LHE/20111017/Sub_Images/1101356132-1.gif

^^ good news Wapda is planning to complete the Dam by 2015. However I higly doubt this date as it took engineers 27 yrs to complete the design than how can we expect this to complete in 4 years time.

^^ good news Wapda is planning to complete the Dam by 2015. However I higly doubt this date as it took engineers 27 yrs to complete the design than how can we expect this to complete in 4 years time.

i saw this project location in 2009 and they already have done a lot of work over it. blocks for accommodation, roads, a lot of ground work, machinery was there....
i think they can make it by 2015. the only problem is that after completion , a good portion of road uptil gilgit will be submerged in water, so they have to make some new road. thats the associated mega project as well. :)

http://www.express.com.pk/images/NP_LHE/20111018/Sub_Images/1101356595-1.jpg

Gilani terms US 12 billion dlr Diamir Bhasha “life-line” of Pakistan

Prime Minister Syed Yusuf Raza Gilani Tuesday termed the US 12 billion dollars Diamir-Bhasha Dam project a “life-line” for the national economy, that would help meet country’s future agricultural and power requirements. He was addressing the foundation stone-laying ceremony of the world’s highest concrete dam on River Indus that would generate 19 billion units of electricity annually and enhance life of Tarbela Dam by over 35 years.

Prime Minister Gilani termed it a historic day and appreciated the people of Pakistan, Gilgit-Baltistan, Azad Jammu and Kashmir and their political leadership for standing united to initiate the mega project.He said the gigantic project would generate 4500 MW electricity and store over 8 Million Acre Feet of water to meet country’s growing power and irrigation needs, and was the outcome of consensus amongst all stakeholders.

He said taking clue from the fate of the Kalabagh Dam that fell victim to some politicians who kept on playing to the gallery, he decided to take all stakeholders on board.

Gilani paid rich tributes to the political acumen of all political parties for backing the project. The Prime Minister also lauded the local people who had to sacrifice their ancestral lands for a great national cause.

The Prime Minister expressed his gratitude to the international donors for the project. He regretted that had the work on the project started earlier, it would have gone a long way in alleviating the sense of deprivation of the people.

Gilani said the dam was the outcome of the vision of Shaheed Zulfikar Ali Bhutto and recalled that in 1974-75 Northern Areas Framework Ordinance was promulgated and all agencies were given the status of Districts.

He said Shaheed Zulfiqar Ali Bhutto had added Ghizer and Ganche as new districts and launched work on the Pak-China symbol of Karakoram Highway.

Gilani, referring to the pointing of a complaint about payment of compensation said a committee has already worked on the matter and if there were any more issues, these need to be resolved by sitting together with the leadership of the GB. He also asked the Chief Minister GB to accommodate elected members from MQM in the government so that they can play a positive role in the development of their area.

He said agreements had been entered with China on the construction of 165 km Jaglot-Skardu and 135 km long Jaglot-Sazin.

Gilani announced Rs 200 million for District Diamir, setting up of Engineering faculty at the KKH University, that would be later upgraded to a separate engineering university. He directed setting up of a Cadet College at Chillas He announced an additional amount of Rs one billion to the Government of GB for KKH and other roads besides the already allocated amount of Rs 11.5 billion.

The Prime Minister also directed Wapda to initiate work on upgradation of three DHQ hospitals at Chilas and Skardu, a public school at Ganche, sponsorship of GB scouts, where local people of Diamir Bhasha be given preference.

I read somewhere this Dam is located at faultline and is probably not the best location for this kind of huge infrastructure. Does someone has insight on this story?

i saw this project location in 2009 and they already have done a lot of work over it. blocks for accommodation, roads, a lot of ground work, machinery was there....
i think they can make it by 2015. the only problem is that after completion , a good portion of road uptil gilgit will be submerged in water, so they have to make some new road. thats the associated mega project as well. :)

yeah I also heard some road is going to be submerged. Not sure if its going to be Karakoram highway. Any way good to know that some progress has already been made.

I read 12 years to complete. 2023....

2015 would be more amazing then Sobers.

It will complete in 12 years time, so chill for the time being...

you cannot complete this dam in 4-5 years. will take more than 12years, as huge portion of kkh will submerge init, and it will take few years to just redesign the KKH only.

you cannot complete this dam in 4-5 years. will take more than 12years, as huge portion of kkh will submerge init, and it will take few years to just redesign the KKH only.

chinese are already working over KKH part. i think they can make in 4-5 years...the actuall structure is not that wide. the real dam are the mountains. they just have to make one wall between two mountains. in actual reality , it will be physically smaller then mangla or tarbela (much smaller) .

^^but much taller, infact the tallest RCC dam of the world once completed.

I wish they had come up with a better design..so it could be made into a tourist attraction and a National Icon....like Hoover Dam in US.

I wish they had come up with a better design..so it could be made into a tourist attraction and a National Icon....like Hoover Dam in US.

If they make a museum for the artifacts found on the site then inshallah it will defiantly become an tourist attraction :)

Discovery of Buddhist artifacts

On April 4, 2008, it was reported in several major South Asian newspapers that Buddhist artifacts, possibly numbering in the thousands, have been recovered at the site of the Diamer-Basha Dam.[1] According to these articles, the beleaguered engineering firm Lahmeyer International,[2] which has been involved in planning out the dam, has suggested a museum be built to house the artifacts. Also, an unnamed German scholar affiliated with a German archaeological university (possibly the German Archaeological Institute) has traveled to Pakistan to study the artifacts.[3]

The Government of Pakistan has now decided to secure and relocate all items of archaeological significance from the areas that will be inundated by the Diamer-Bhasha Dam and its reservoir and to place them in a newly constructed museum near the Dam site.

If they make a museum for the artifacts found on the site then inshallah it will defiantly become an tourist attraction :)

Discovery of Buddhist artifacts

On April 4, 2008, it was reported in several major South Asian newspapers that Buddhist artifacts, possibly numbering in the thousands, have been recovered at the site of the Diamer-Basha Dam.[1] According to these articles, the beleaguered engineering firm Lahmeyer International,[2] which has been involved in planning out the dam, has suggested a museum be built to house the artifacts. Also, an unnamed German scholar affiliated with a German archaeological university (possibly the German Archaeological Institute) has traveled to Pakistan to study the artifacts.[3]

The Government of Pakistan has now decided to secure and relocate all items of archaeological significance from the areas that will be inundated by the Diamer-Bhasha Dam and its reservoir and to place them in a newly constructed museum near the Dam site.

yes, i think it will definitely become the tourist spot ,

why

1. this is a beautiful location and tall dam like this will be breath taking.
2. they have budha reserves close by and they might make a measuem over it.
3. its in the middle of besham-giglit road. people travelling from islo, stay the night at besham. then they go straight to gilgit. with this dam, they might considering staying near this dam if some decent accommodation builts up.

This dam's ground breaking was done last month BUT the construction work will start next year....:(

Progress on Diamer-Bhasha Dam

‘Exchange of MoU with ADB today’

Water and Power Development Authority (WAPDA) Chairman Shakil Durrani called on Prime Minister Yousaf Raza Gilani here on Monday and informed him that the government was going to exchange Memorandum of Understanding (MoU) with the Asian Development Bank on Tuesday (today) on Diamer-Bhasha Dam, which was a major development for the project.

The ADB has also agreed to become the financial adviser for the dam, which augurs well for the hydropower mega project. He said that no mega project was taken up during the last 40 years.

The chairman informed that the groundbreaking ceremony of the project by the prime minister in October this year along with its earlier approval by the Council of Common Interests gave the requisite confidence to the international financial institutions that there was no going back and the government was committed to undertake the project. He said that the project would not only add 4,500 megawatts (MW) power to the national grid but would also prove to be a lifeline for the agriculture and industrial sectors.

The chairman thanked the prime minister for his directives to the Ministry of Finance to release $100 million to the National Highway Authority for the widening and improvement of the Karakoram Highway from Tha Kot to the site of the dam. It is of fundamental importance because in absence of the road, the heavy machinery for the project cannot be transported to the site of the project, the chairman said.

The chairman said that the dam’s capacity of 8 MAF water and power generation capacity of 4,500 MW would help to bring industrial and agriculture revolution in the country besides creating tens of thousands of job opportunities. The chairman said that the project would recover the entire cost within seven years.

The chairman said that the project would produce electricity worth $2 billion annually besides sufficient water storage capacity for the agriculture to irrigate 2 million acres of land in the country. It is easy to imagine the boost the agriculture sector would get when two million acres of land would start giving yield and its consequential staggering social impact, he stated.

He further said that the dam would also increase the life of Tarbela Dam for another 35 years because the downstream silting would be reduced to a considerable extent. The chairman also informed the prime minister that there was at present sufficient water in the water reservoirs required for the power generation and for the Rabi crops. At present, water reservoirs are filled with 6 MAF, which is almost double the water available during the last 10 years. The inauguration of the Mangla Dam Raising by Gilani had made the real difference.

The chairman said that during the past 10 years water reservoirs stood at an average of 3.5 MAF, which resulted into less power generation and less water for the agriculture sector, affecting the agriculture and industrial production. The chairman also requested the prime minister to inaugurate the Khan Khawr Hydropower Project with 72 MW capacity, District Shangla, Khyber Pakhtunkhwa, which is 265 kilometres (kms) from Islamabad on the silk route. Jinnah Hydropower Project with the capacity of 96 MW, district Mianwali, is also complete and ready for the inauguration by the prime minister, the chairman said. The project is located on the right side of Jinnah Barrage on Indus River about 5km downstream of Kalabagh.

ADB to play key role in Bhasha Dam’s financing

http://www.dawn.com/wp-content/uploads/2011/12/Bhasha_543x275.jpg
“Diamer-Bhasha dam is the most complex and comprehensive project the ADB has ever handled,” said ADB energy division director for the Central and West Asia Department Rune Stroem.

Without a firm commitment yet on the size of financing, the Asian Development Bank has decided to play a key role in the development of Diamer-Bhasha dam as its senior lender, co-financier and financial adviser to make the $12 billion project bankable for lenders, export credit agencies and contractors.

At the conclusion of a week-long visit to Pakistan, ADB energy division director for the Central and West Asia Department Rune Stroem told journalists that Pakistan and the ADB had agreed to process the project together so that its structure was acceptable to international financial institutions, commercial banks and export credit agencies.

The ADB’s country director for Pakistan, Werner E. Liepach, said the bank did not have a loan programme for Pakistan at the moment because of the absence of an IMF programme or a letter of comfort. “But that does not mean the ADB has suspended programme loans to Pakistan,” he added.

He said the ADB had planned to provide $450 million project loans to Pakistan this year, which was now expected to be about $520 million because of higher requirement for flood-related assistance. Of this, the bank has already disbursed about $502 million until last week.

He said the Pakistan government had also sought a $1 billion loan to resolve inter-corporate circular debt, but neither the plan for resolving the chronic problems had been discussed nor had the bank made any commitment.

“The ADB will act as a senior lender, co-financier and financial adviser for the project to make it bankable for the rest of the world,” Mr Stroem said, adding that the two sides would finalise a draft of MoU (memorandum of understanding) this week to define the role of the government and the ADB.

He dispelled an impression created by a statement of the water and power ministry about the signing of an MoU this week. He explained that the two sides would possibly finalise a draft MoU this week. Moreover, he added, the ADB had not committed any amount or mode of financing because the structure of the financing package had not yet been finalised.

Mr Stroem said Wapda had done a remarkable job at the engineering side of the project and the ADB would work on human and social aspects of the project. “The government and Wapda authorities have also done good work on resettlement of people to be displaced by the project, but there are still a lot of gaps on mitigating environmental effects to international standards.”

He said the government would have to make a lot of effort in resolving the revenue sharing dispute between Gilgit-Baltistan and Khyber Pakhtunkhwa. He said there was going to be a lot of debate on revenue sharing and resettlement issues.

In reply to a question, Mr Stroem said the construction of the multi-purpose dam was a marathon race and the challenge for the ADB was to make it bankable for the international world through a financial package that should be attractive to the international financial institutions, export credit agencies and commercial banks. “Diamer-Bhasha dam is the most complex and comprehensive project the ADB has ever handled.”

He said while international financial institutions like the ADB would provide most of the foreign component of financing for civil works, equipment supplies would have to be covered by export credit agencies and the financing gap in civil works would have to be raised through commercial financing. The cost of land acquisition and resettlement would be provided by the government. The ADB would lead the syndicate of international lenders, he said.

About the impact of global recession, he said most possibly it would go in favour of Pakistan. He explained that the international market was not saturated with similar projects owing to the recession that would ensure shorter delivery time for equipment and material. He said prices of international inputs were currently down and leading companies had a lot of idle people who could be employed in Pakistan.

Diamer-Bhasha project: Islamabad moves to quell dam boundary dispute

http://i1.tribune.com.pk/wp-content/uploads/2012/01/322734-diamer-1326776233-373-640x480.jpg

As Gilgit-Baltistan (G-B) and Khyber-Pakhtunkhwa (K-P) continue to clash over the Diamer-Bhasha dam boundary, the federal government has summoned the chief ministers of both regions to Islamabad in order to work out a solution to the dispute, sources revealed on Monday.

“The chief ministers of both regions have been summoned to Islamabad for a meeting with the prime minister,” an official in the G-B Assembly said.
The K-P government had written a letter last year to the prime minister, asking him to help ‘K-P get its right’ over the 4,500-megawatt dam.

Anticipating a tough stance from G-B, the K-P government has done its homework before presenting its case at the meeting due next week, sources said. K-P has a claim over about eight kilometres of land near the Diamer-Bhasha dam which is being built on Indus River, about 300 kilometres upstream of Tarbela dam and about 40 kilometres downstream of Chilas Town, the headquarters of G-B’s Diamer district.

The federal government has asked the K-P government not to take the issue to the Supreme Court, and to instead find an out-of-court solution to the issue.

The situation turned serious after the K-P Assembly passed a resolution last year, claiming that eight kilometres of land on the right side of the dam was part of K-P. The move infuriated the G-B government, which constituted a committee including all sitting lawmakers from Diamer valley. The committee, however, traced documents signed between the representatives of Kohistan and Diamer during 1947, which had declared the land part of Diamer. The G-B Assembly later passed a unanimous resolution, rejecting K-P’s claim.

Likewise, the K-P government refers the issue to the 1955 Boundary Commission report which suggests that eight kilometres of land near the dam is part of K-P. In other words, if K-P’s claim is accepted, it will get 50% of the royalty.

Diamer-Bhasha Dam to be completed in seven years, Senate told

Minister for Water and Power Syed Naveed Qamar on Friday informed the Senate that physical work on Diamer Bhasha Dam has already been started and it would be completed in seven years.

Responding to different supplementary questions raised by Senators during Question Hour, he said that land for construction of colonies and other infrastructure has also been acquired and payment was also made to some victims in the current fiscal year. Remaining payment would be made during the next fiscal year, he added.

He said that Wapda has prepared a master plan to construct a number of storages including Diamer Bhasha, Munda and Kurram Tangi dams in near future besides early completion of Mangla Raising Project and Gomal Zam dams. Wapda was also undertaking construction of small and medium dams in all the four provinces. The minister said that some funds were released last week for Kurram Tangi dam and would be completed in next three years. The USAid has also shown interest to provide assistance for the project, he added.

He said soon consultant would be appointed for the Munda Dam. To another question, the minister said that Alternative Energy Development Board (AEDB) was created in May 2003 and Rs 893.53 million was allocated under various budgetary heads during the last 8 years to it.

What is the latest development status?

7 years would be some achievement. Insha-Allah, with blessings of Rasool Allah, khatum ul Nabi, this can be done in just 7 years.

What is the latest development status?

7 years would be some achievement. Insha-Allah, with blessings of Rasool Allah, khatum ul Nabi, this can be done in just 7 years.

So far, total land acquisition not done...

7 years would be some achievement. Insha-Allah, with blessings of Rasool Allah, khatum ul Nabi, this can be done in just 7 years.

Pray a little harder. Maybe that will help it finish in 5 years.

The sooner the better. We can agree on that.

Pray a little harder. Maybe that will help it finish in 5 years.

:rofl:

What is the latest development status?

7 years would be some achievement. Insha-Allah, with blessings of Rasool Allah, khatum ul Nabi, this can be done in just 7 years.

Ameen wa-rehmatulil-aalameen.

:D

US, ADB agree to finance Diamer-Bhasha Dam

United States and Asian Development Bank (ADB) have agreed to jointly finance the validation exercise of technical and financial feasibility and safeguard mechanism related to environment, social and displacements of people for construction of much-awaited $11.2 billion Diamer-Bhasha Dam, it was learnt.

“The estimated cost of $11.2 billion for Basha dam will be escalated keeping in view depreciation of rupee against dollar and efforts are underway to convince the World Bank to become part of consortium led by ADB,” top official of economic team confided to The News here on Wednesday.

Water and Power Development Authority (WAPDA) Chairman Shakeel Durrani held important meetings with top economic and planning managers here in the federal capital on Wednesday afternoon to accelerate the process of accomplishing compensation package for displaced people in Northern Areas as donors’ community asked the government to accomplish this process without hue and cry of local community.

After surfacing complaints of compensations extended to wrong people, a joint probe team of donors and WAPDA had visited the northern area and suspended a patwari who found involved for giving compensation money to non-eligible people.

In order to validate feasibility studies of this important project, the United States would extend grant of $7.5 million while ADB would provide technical loan of another $7.5 million, totaling this cost up to $15 million.

The ADB’s high-powered mission on energy sector led by Rune Storem is expected to visit Islamabad within next few weeks to review progress on feasibility studies prepared by the Water and Power Development Authority.

“The ADB is going to play leading role for making this project as bankable for other donors and the Manila based bank is expected to provide financing of $4 billion out of total $10 billion required from the donors.

We are making efforts to convince the World Bank to become part of consortium for Basha dam as it will help Pakistan to get money from other European donors,” said the official. He said that the suppliers’ credit would also play a crucial role to ensure external financing of this important project.

About cost of the project, he said that the escalation would be occurred in the case of this project because first the compensation money had already gone on higher side. The cost of the project will go up from initial assessment of $11.2 billion by adding few billion dollars more and the major cause of this escalation would be rampant depreciation of rupee against dollar.

“USA has also agreed to provide $200 million for Basha dam in first phase through Kerry Lugar Law (KLL) money,” said the official, but was clueless when asked when this money would actually be disbursed.

The lead syndicate established for Diamer-Bhasha dam under Asian Development Bank had already asked Pakistan to fill gaps by focusing more on social aspects of the displaced population and placing dispute resolution mechanism for making this project ‘bankable’ for international investors.

The first instalment to construct temporary housing facilities has been handed over to families whose lands were acquired to build the 4,000MW Diamer-Bhasha Dam in Gilgit-Baltistan.

Cheques were delivered on Thursday to families in Thor Valley in G-B’s Diamer district by Dr Raheal Ahmad Siddiqui, general manager (land acquisition and resettlement) at the Water and Development Authority, and Shoukat Hussain Bhatti, the general manager of the Diamer-Bhasha Dam Project (DBDP).

In a meeting on February 21, Wapda had decided to provide temporary housing facilities to all affected families in Thor Valley. The facility is in additional to the full payment for land and establishment of permanent townships in five years. The temporary accommodation covers construction of a one-bedroom residence, and will be paid in three instalments.

Wapda is also planning to establish veterinary camps in various valleys of the Diamer district by the end of this month and the construction of a girls’ school in Chillas has also been started. The school will be run by locals, to ensure employment.


Source:http://tribune.com.pk/story/347284/diamer-bhasha-affectees-get-first-instalment-for-temporary-housing/

progress update?

As for as I remember it started in previous govt. tenure and still it hasn't gone anywhere. Most projects in Pakistan stay on drawing board.

Diamer-Bhasha Dam ADB mission satisfied with on-site social, engineering work

In a positive and remarkable development, a three-member review team of the Asian Development Bank (ADB) that is to give Pakistan $5 billion for the most strategic Diamer-Bhasha dam visited the project site and appreciated on-ground engineering and social work being done by Wapda, a senior official in the Ministry of Water and Power told The News.

The United States has also intimated that it would give $1 billion for the dam in five years — $200 million each year, the official said. To a question, he said, the US agreement to give $1 billion would pave the way for major international financial institutions to provide more funding for the project.

The official said the World Bank, which was earlier hesitant to fund the project, is now very much willing to fund it because of the US willingness to provide $1 billion. The top management of the World Bank has in principle agreed to extend a loan for the project, he said, adding that when the new president of the bank takes charge, Pakistan would pursue its case more vigorously.

To a question, the official said, the Manila-based ADB would remain the leading donor institution. He said the purpose of the ADB review mission’s visit was to witness on-ground engineering and social work being carried out by Wapda. It visited the work on 12 local contracts for construction of Wapda offices, colonies, contractor camps, road infrastructure, etc. The team visited the community seminary and first-ever school for girls in Chilas built by Wapda and appreciated the social services being provided to locals, he said.

The ADB mission also visited Shatial in Kohistan district of Khyber Pakhtunkhwa and Thor Valley, Khanberi Valley and DHQ Hospital Astor in Gilgit-Baltistan as well as witnessed the functioning of the Mobile Health Unit provided by Wapda for the population affected by the project, the official said. It was impressed by the social change in the area because of the project, he said, adding that the project would help end of bonded labour (locally known as Kalang) in Khanberi Valley.

The official said the land acquisition for the project is in progress while 12 contracts for the construction of Wapda offices, infrastructure, etc, in the project area have already been awarded.

Good development.

2020 odd is the due date?

WB wants Bhasha dam delayed (http://dawn.com/2012/08/11/wb-wants-bhasha-dam-delayed/)

ISLAMABAD, Aug 10: The World Bank has reportedly offered funding to induce Pakistan to take up the Dasu power project in Khyber Pakhtunkhwa and delay for 10 years the strategically more important Diamer-Bhasha dam in Gilgit-Baltistan.

That appeared to be the crux of the proceedings of Senate Standing Committee on Water and Power here on Friday, even though top bureaucrats tried to satisfy the committee that Pakistan’s sovereign decision on the matter maintained focus on the multipurpose Diamer-Bhasha project.

The World Bank has so far been reluctant to commit funds for the $12 billion Diamer-Bhasha project apparently because of behind-the-scenes opposition from India. The project promises 4,500MW of cheap electricity and 8.5 million acre feet (MAF) of water.

Senator Zahid Khan of Awami National Party who presided over the meeting provided the information about the WB offer and seemed inclined to support it apparently because it promised royalty on power generation and water use charges for Khyber Pakhtunkhwa unlike Diamer-Bhasha which required sharing revenues with Gilgit-Baltistan.

He said the World Bank had offered funding for 4,320MW run-of-the-river Dasu hydropower project instead of Diamer-Bhasha which would be delayed for 10 years. He said that according to his information “the bank is ready to extend funding for the Dasu project instead of Diamer Bhasha dam”.

“Government’s priority is Bhasha dam, and not Dasu project, and the World Bank is not responsible for making policies in Pakistan. We have made it clear to all donors that Pakistan will not give preference to Dasu over Bhasha,” retorted Wapda chairman Shakil Durrani who also belongs to Khyber Pakhtunkhwa and is close to the Khans of Charsadda.

The site of the Dasu hydropower project is 7km upstream of Dasu village on the Indus and 74km downstream of Diamer-Basha dam. It is located in Kohistan district of Khyber Pakhtunkhwa.

Senator Zahid, who had specially invited officials of the economic affairs division for a briefing on the funding issue, asked if Bhasha was getting delayed why the government was not starting work on Dasu which was equally important.

The Wapda chairman said that Dasu was a run-of-the-river project while Bhasha dam would offer water storage which was a bigger challenge for the country.

He said Tarbela dam’s storage capacity was diminishing with 5,000 tons of silt filling its reservoir daily. “If Wapda starts work on the Dasu project, Diamer-Bhasha dam will be delayed for 10 years as we can construct one dam at any given time,” he said.

In the ensuing heated debate, Water and Power Secretary Zafar Mahmood tried to pacify both sides by saying that with adequate funding there should be no problem in undertaking both projects.

The committee decided to get a briefing on the prospects of funding from the economic affairs division at the next meeting.

The meeting was informed that the cost of 969MW Neelum-Jhelum hydroelectric project had increased from Rs130 billion in 2007 to Rs275 billion in 2012. The project was estimated to provide a guaranteed annual revenue of Rs45 billion to the government after its completion in 2016, project director Lt-Gen (retd) Mohammad Zubair said. At present prices, he added, the generation cost would be less than two rupees per unit after paying back interest.

He said a refusal by Norconsult of Norway to work in Pakistan had led to mobilisation of new consultant NJC – a joint venture led by MWH of the United States – on Aug 1, 2008. It completed review of earlier basic design made by Norconsult in 1998 which was not developed in detail.

Lt-Gen Zubair said review and modification of the project’s design after the 2005 earthquake had led to the increase in cost. In case of an earthquake of 7.6 magnitude one part of the project would remain safe, he said, adding that Rs24.843 billion had been spent on the project up to June 30 this year.

Answering a question, he said Wapda faced Rs90 billion funding shortfall which was now being bridged through a surcharge of 10 paisa per unit, Sukuk bonds and other measures.

Lt-Gen Zubair said redesigning of the project after the 2005 earthquake, two to three years delay in arranging land by the AJK government and six to eight months delay due to 2010 floods were key reasons for late start of the project.

He informed the committee that Exim Bank of China would soon approve $448 million for the Neelum-Jhelum project and in case of a delay Wapda would face funding problems. Abu Dhabi had promised $100 million for the project but it was not interested anymore, he said, adding that he would not disclose the reasons because these were beyond his purview.

Shakil Durrani said Norconsult had not conducted a detailed geological survey, adding that no international consultant was ready to work on the Neelum-Jhelum project because of its close proximity with the Line of Control.

He said Wapda had changed construction methodology from drill and blast to tunnel boring machine (TBM) because progress was slow and behind schedule. He said TBM had faster excavation rate of up to 16 metres a day, implying that the tunnels would be completed in 30 months which would lead to completion of the project in 2016 instead of 2018.

Responding to a question about excessive use of Chinese machinery despite its inferior quality, the Wapda chairman said it was not possible for the authority to buy equipment from other countries with funding from China. “How can we set our conditions when we are borrowing money from other countries? If China gives funding we are bound to buy Chinese equipment,” he added.

Now that is not a good news! though the hydel power generation from both Dasu & Bhasha is approximately same but Bhasha dam has a great edge over Dasu because of its capability of water storage! And we seriously need another water reservoir ready in next 4 to 5 years!

India at it again. Baghal mein churee..muun per raam raam.

Progress on Daimer-Bhasha dam; govt to construct mega water projects: Ahmed Mukhtar

http://cache.pakistantoday.com.pk/2012/08/bhashadiamer-480x238.jpg
ISLAMABAD - Minister for Water and Power Ch Ahmed Mukhtar has said that the government is determined to construct mega water and power sector project. All options are being considered for their financing to complete them within the shortest possible time frame.
He made these remarks while presiding over a meeting on Diamer Bhasha dam project here on Monday. The meeting was attended by Secretary Water and Power, Secretary Economic Affairs Division, Chairman WAPDA and senior officials of concerned ministries.
The Minister stated that construction of Mega water projects to enhance water storage and to produce cheaper electricity is the top priority of the government and various projects are being constructed in this regard.
The meeting asked WAPDA to furnish a report with all the options and commitment from donors to finance the 4500W Diamer Bhasha dam project. The report will be discussed after taking views from EAD and Planning Commission in a meeting to be held in the next couple of days.
Earlier Chairman WAPDA briefed the meeting on the current status of the project; its benefits, land acquisition, infrastructure development, compensation package, allocation by the government and other related issues.

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ADB wants Pakistan to bow before India (http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/business/13-Aug-2012/adb-wants-pakistan-to-bow-before-india)


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ISLAMABAD - Pakistan does not need financial support of Asian Development Bank if rulers really want to construct the dam and are serious to resolve water and power issues in the country, it could be built using local resources.
High-level officials of Water and Power sector believe that local resources can be used to construct very important dam of the country. They said that Asian Development Bank is trying to pressurise Pakistan to bow down in front of India as most of the people running ADB belongs to India and they have strong influence in the organisation.
The sources said that it was already expected that ADB will try to exploit Pakistan in terms of funding Bhasha Dam at a certain time that it has done and now the only way to respond gracefully is not to ask them for the funding and focus on the local resources to start the project that can be done easily provided the political will was available.
It is pertinent to mention here that it has been discussed in the standing committee meeting on Water and Power the other day that ADB that earlier showed its interest and signed MoUs with Pakistan to fund Bhasha Dam Project was now using delaying tactics that resultantly was delaying the start of the project.
The sources whereas said that the government is unnecessarily delaying project that ultimately increasing its cost. The cost of the project was around $10 billion four years back and with delay the cost has increased by $2 billion or even more.
The only reason that decision-makers are interested in obtaining loans was the kickbacks as there were lesser corruption chances using the local resources to build the dam, the sources said. They said that it has become a fashion looking for World Bank and Asian Development’s Bank assistance to start any project in the country.
The government, if serious to start the project, could simply launch Term Finance Certificates in the country and could generate lot of finances to start the project, experts believed.
The project could never be started if the government did not stop expecting from international financial institutions. The sources said that in the present circumstances Pakistan could not rely on Friends of Pakistan as they were too led by Asian Development Bank.
The total project cost is $12 billion and it can be completed in not less than 10 years time period. The government should launch TFCs of Rs 100 billion every year and the project will be completed easily. Earlier the government has launched successfully the TFCs to pay the circular debt of power sector that shows that people still could invest in any financial scheme launched by the government.
The sources revealed that basic work has been done on the project such as land acquisition, project design and compensation given to the effectees. Even the tender documents are ready and the government was delaying giving advertisement to award contract and starts work on this very important project.
It is also pertinent to mention here that experts have already reached the conclusion that only hydel power generation could present a long-term solution to the energy crisis looming in the country.
A country like Pakistan with a critical economic situation cannot afford generating electricity using fossil fuel. Not only the power issues could be solved by building dams in the country but dams were also very much necessary to address the water issued being faced at the moment, the sources maintained.

If you go back to the first post of this thread, from 2008, the cost mentioned back then was also $12 billion. I think we should ask China for a loan for this dam. They're helping us with our nuclear power plants despite strong reservations expressed by the US, so they can definitely help with this project as well.

I hope this crucial project goes ahead.

why cant Pakistan build this dam with its own money and build the other ones (that dont involve india) with loan money?

Being the rich country that we are, we really should do that!

Donors back out: Govt may award Diamer-Bhasha Dam contract to China

The international donors had refused to provide funds for Diamer-Bhasha Dam due to Indian objections over its construction.

The government may utilise an option of direct award of contract for the $12 billion Diamer-Bhasha Dam with power generation capacity of 4,500 megawatts and select China for the purpose as multilateral donors have backed out and linked the project with a no-objection certificate from India.

In a meeting held at the Ministry of Water and Power and chaired by Water and Power Minister Ahmed Mukhtar on Monday, participants said international donors had refused to provide funds for Diamer-Bhasha Dam due to Indian objections over its construction.

The Water and Power Development Authority (Wapda) was asked to submit a report with all options and commitment from the donors to finance the project. The report will be discussed after taking the views of the Economic Affairs Division and Planning Commission in the next meeting to be held in a couple of days.

“Besides China, Russia is also ready to finance the dam in case the contract is awarded without bidding,” a senior official of the Ministry of Water and Power said.

China and Russia have also offered the same proposal for the Iran-Pakistan (IP) gas pipeline project.

Sources told The Express Tribune that the government had also decided to seek assistance from the Friends of Democratic Pakistan (FODP) – a group comprising friendly and donor countries which was formed to support social and economic development in Pakistan.

This comes following refusal of the World Bank, Asian Development Bank (ADB) and other multilateral donors to provide funds for the dam in the wake of fears expressed by India over the environmental impact of the dam’s construction. When approached for comments, the Wapda chairman did not respond to the call.

Pakistan has been negotiating with China, ADB, World Bank and Islamic Development Bank (IDB) for financial assistance for the dam. However, the donors have shifted focus and are now offering funds for the 4,320-megawatt Dasu hydropower project.

The Dasu project is situated seven kilometers (km) upstream of Dasu village on the Indus River, 74 km downstream of Diamer-Bhasha Dam and 350 km from Islamabad. The project is located in Kohistan District of Khyber-Pakhtunkhwa.

In the meeting, Water and Power Minister Ahmed Mukhtar said the government was determined to construct mega water and power projects and all financing options were being considered to complete them within shortest possible time.

He said the execution of mega water projects, aimed at enhancing water supply and producing cheaper electricity, was the top priority of the government.

Earlier, Wapda Chairman Shakil Durrani briefed the meeting on the current status of Diamer-Bhasha project, its benefits, land acquisition, infrastructure development, compensation package for the displaced, allocation by the government and other related issues.

If India is objecting to this dam, then it's surprising that Russia is willing to fund it :?

yeah i wouldn't go with Russia. Guess that leaves us China :?

so built both Basha and Dasu with the help from their respective financers.

just go ahead with this man....
ask china to do the damn and russia to do the pipeline...

thsese idiot leaders we have.....worthless

just go ahead with this man....
ask china to do the damn and russia to do the pipeline...

thsese idiot leaders we have.....worthless

Diamer Bhasha dam: Japanese aid keeps plans afloat

Tokyo agrees to finance power houses of the 4,500MW project.

Japan has agreed in principle to finance the power houses of the Diamer Bhasha dam, renewing hopes that the project will not be suspended. The dam has been designed to generate 4,500 megawatts of electricity, which Pakistan direly needs, besides storing water for agriculture purposes.

According to a senior government official, Japan has agreed to finance the construction of the power houses of the dam through the Japan International Cooperation Agency (JICA). He said the move, if it materialises, will create a win-win situation for both parties: it will provide much-needed funding for the project and an opportunity to JICA to sell its equipment.

However, the exact amount of the funding has not yet been worked out as modalities will be finalised later on, the official added. Meanwhile, the authorities have informed the premier about this development.

The project was originally meant to be completed by 2017, but suffered setbacks after its lead financer reportedly backtracked from commitments. It is currently facing delays of up to three to four years. Officials say Japan’s decision is good news for the country: the $11.2 billion project can still be kept alive, after the Asian Development Bank (ADB) recently reportedly refused to fund the dam.

The ADB had committed $4.5 billion to $5 billion for construction of the project. The bank had also pledged that it would act as the government’s investment banker in raising the money from international capital markets to meet funding requirements.

According to media reports, the ADB has now refused to provide financing for the dam. According to a senior government functionary, the ADB has reiterated an old stance: it will be difficult for the lending agency to arrange the entire funding on its own, and it needs collaboration from other international lending agencies as well. The ADB itself has not clarified the news reports.

Officials say that talks with the ADB continue, to convince the lending agency not to withdraw its support even if there are problems in arranging funds from other international lending agencies.

In its efforts to keep the ADB on board, the government has increased the land acquisition compensation cost to more than twice the original. The ADB had suggested the government increase the cost – in order to appease the affected population and avoid future litigation. The cost of the land acquisition project was less than Rs48 billion originally, but has since soared to Rs116.6 billion, according to the Planning Commission.

The World Bank has already refused to provide funds for the initiative, fearing a backlash from India as New Delhi considers Gilgit-Baltistan a disputed territory. However, the United States has assured up to $500 million in assistance for the project; to be paid out of the $7.5 billion Kerry Lugar aid package.

thanks hope it completed... Anway Geo aman ki asha.

every year i pass by the site of Basha DAm nothing started from the first innauguration of its construction 5 years back in musharaf's tenure up till now nothing initial work like labour colonies n any other thing happend there ... they should award the project to chinese ,, chinese are already busy in making of KKH give them the contract

The ADB has apparently denied walking away from the project :dunno:

But if you read the articles, it is obvious that they're lying and trying to convince us they will eventually fund the dam, as long as we build another dam of nearly the same capacity but little to no water storage ability first :nuts:

This is nothing but delaying tactics, and trying to keep Pakistan from seeking alternative sources. I hope the Government is smart enough not to be hoodwinked.

ADB has not delinked itself from Diamar-Bhasha Dam project: Werner (http://pakobserver.net/detailnews.asp?id=171856)

Staff Reporter

Islamabad—The Asian Development Bank (ADB) has not walked away from the construction of 4500 megawatt Diamar-Bhasha Dam project, Country Director of the bank Werner E. Liepach said here on Friday. “We have not walked away and ADB has always been there to help Pakistan in rain and shine,” Werner E. Liepach told media persons.

He was accompanied by Director General Private Sector Operations Department (PSOD), Philip C. Erquiaga, who is visiting the country to help enhance private sector investment of the bank in Pakistan. Reports of ADB’s disengagement from the dam were misleading and out of proportion, he said while commenting on some news articles regarding the matter.

He said that the Bank has not walked away from the project but ‘we are not as fast as the government wants us to be on it’ adding that the main focus of ADB strategies is to ensure that the project is completed and implemented and this could be done when everything is in place before going for the project construction.

He said that Diamar Bhasha dam project was big and hence a complex project, requiring huge funding for which there is need to invite other parties and ADB has been asking the government to bring other financers for the project. “We are in Bhasha but ADB cannot do it alone and even the government of Pakistan cannot do it alone,” so there is need that some other parties or financial institutions come forward to help funding the project.

He was of the view that construction of Bhasha was very much important for the country and ADB has been engaged in negotiation with the government to find financers for the project. He opined that Pakistan can use the Friends of Democratic Pakistan forum for bringing into investments for the dam as well as other projects of the country.

He categorically denied that there were relationship gaps between the bank and the government. “No relationship issues between ADB and the government is there and the bank has always been there to help Pakistan.” He said that Pakistan was the member of the bank and it is duty of the bank to help its members. However, he added that as per the policies of the bank, any project in disputed territory should have no objection from the concerned parties. However, he clarified that ADB has not demanded any written `No Objection Certificate’ from the government of Pakistan, as suggested in media reports.

He said that after the financing plan is done, the project plan goes to the ADB board, where it is required that the projected is not objected at this stage, he added. He said that ADB was very much engaged with Pakistan and would continue its engagement with the country to help it realize the development objectives.

Diamer Bhasha Dam: Govt to approach China, local banks for financing (http://tribune.com.pk/story/429899/diamer-bhasha-dam-govt-to-approach-china-local-banks-for-financing/)

By Zafar Bhutta
Published: September 2, 2012

With power shortage increasing continuously in the face of rising consumer demand, the government has decided to seek financing from China for the mega $13 billion Diamer Bhasha Dam with power production capacity of 4,500 megawatts and also take loans from domestic commercial banks by offering guarantees.

According to sources, Prime Minister Raja Pervez Ashraf will place a request before his Chinese counterpart during the visit on September 10 for financing the Diamer Bhasha Dam, for which multilateral donors including the World Bank and Asian Development Bank (ADB) had sought no-objection certificate (NOC) from India due to the dam “being situated in a disputed territory”.

The decision to approach China was taken in a meeting held at the Planning Commission last month as Beijing had wide experience of building large dams, a senior government official said. During the meeting, different options were considered for arranging capital for the dam, which is vital for wiping out most of the gap between electricity demand and supply in the country.

In the meeting, the government officials also decided to borrow money from banks with 50% guarantees to be provided by the central government and the remaining by the Water and Power Development Authority (Wapda). The loans will be taken against security of assets like turbines of dams.

“The prime minister has been briefed on the plan for seeking financing from China and he will discuss it with his Chinese counterpart during the upcoming visit,” the official said.

The Chinese government had already offered Pakistan skilled labour for the construction of the dam. Beijing has 17,000 skilled workers, who worked on the Three Gorges Dam, which is producing 30,000 megawatts of electricity.

Sources said China had also assured Pakistan that it would hire a company to finance the construction of the dam. China Development Bank was also willing to pour money into the project. However, they said China would seek guarantees from the Government of Pakistan.

Pakistan had been engaged with China since 2008 and had shared with it the draft of a detailed engineering design of the dam.

In the draft, German firm Lemhyer put the cost of the dam at $8.5 billion in 2008 against estimates of $6.5 billion in 2005. The cost has further gone up and now stands at $13 billion, say some estimates, as the project has been considerably delayed compared to the government’s plan to start construction work by 2009.

According to officials, the government has rejected a proposal to impose surcharge on power consumers, like the one being used to finance the Neelum Jhelum hydropower project, to raise funds for the Bhasha Dam.

“The proposal was opposed by different stakeholders as consumers were already paying a higher power tariff,” an official remarked.

Consumers are paying a surcharge of 10 paisa per unit for Neelum Jhelum hydropower plant, which will generate Rs6 billion per annum for the project.

The country has been searching for alternative financing sources since the multilateral donors asked Pakistan to seek NOC from India for Diamer Bhasha dam. The donors instead offered to finance the Dasu hydropower project. However, the government has rejected the donors’ programme and wants to complete Bhasha Dam first.

The Dasu project is situated 7 km upstream of Dasu village on Indus River and 350 km from Islamabad. The project is in Kohistan district of Khyber-Pakhtunkhwa.

Published in The Express Tribune, September 2nd, 2012.

Diamer Bhasha Dam: Russia wants to take up project without bidding

The Diamer Bhasha Dam is a strategic project with power generation capacity of 4,500MW, which is crucial in overcoming the energy crisis.

Russia is seeking direct award of a construction contract for the $13 billion Diamer Bhasha Dam in a government-to-government deal without resorting to international competitive bidding, sources say.

Faced with water and power shortages, Pakistan is looking for funds from China and Russia, who in turn want a government-to-government deal without international bidding.

The government’s search for funds came after multilateral donors asked Pakistan to get a no-objection certificate from India for the dam’s construction.

China and Russia want a similar arrangement for undertaking the Iran-Pakistan gas pipeline project, which has faced fierce opposition from the United States.

According to sources, Pakistan and Russia are likely to strike a final deal on the dam during visit of Russian President Vladimir Putin to Islamabad next month.

“A meeting of Pak-Russia inter-ministerial commission will be held before the visit of Russian president, which will work out a mechanism for financing mega projects,” a government official said.

In a meeting of the Inter-governmental Commission (IGC) held here on Monday, government officials gave a detailed briefing to the Russian team on planned energy projects. However, sources said, Russia made no firm commitment to the dam.

According to the official, it was just a preparatory meeting to discuss different projects, which could be tabled during deliberations with the Russian president.

In the IGC meeting, the Russian side was told that Bhasha Dam was a strategic project with power generation capacity of 4,500 megawatts to overcome the energy crisis. It will have water storage capacity of 8.5 million acre feet to feed the agricultural sector.

Chinese offer
The Chinese government has already offered Pakistan skilled labour for the construction of Bhasha Dam. China has 17,000 skilled workers, who have worked on the giant Three Gorges Dam, which is producing 30,000 megawatts of electricity.

On the other hand, multilateral donors have asked Pakistan to seek a no-objection certificate from India to pave the way for financing the dam, which they say is situated in a disputed territory. Instead, they have offered to finance another project – Dasu hydropower, but the government has rejected the plan and wants to complete Bhasha Dam first.

On Monday, a delegation of the World Bank, headed by Country Director Rachid Benmessaud, called on Federal Water and Power Minister Ahmed Mukhtar and once again offered to finance phase-I of the Dasu project.

Dasu hydropower project is situated 7 km upstream of Dasu village on Indus River and 350 km from Islamabad. The project is located in Kohistan district of Khyber-Pakhtunkhwa.

Russia vs. China. If it wasn't China I'd have thought go with Russia. But can't piss off China.

Give Russia Bhasha Dam while hand China Dasu Dam...:D

Russia vs. China. If it wasn't China I'd have thought go with Russia. But can't piss off China.
Something tells me that this is going to piss more Indians off than Chinese.

Give Russia Bhasha Dam while hand China Dasu Dam...:D

yes that does seem a damn good idea....

US, Japan pledge assistance for Diamer Bhasha Dam

“Diamer Bhasha Dam needs massive financing and we can extend partial assistance for the project,” says USAID Country Director Jock Conly.

The United States has shown its willingness to partially finance the gigantic Diamer Bhasha Dam to ease water and power shortages in Pakistan and this comes at a time when multilateral donors have backed down on assurances of funds following Indian objections.

“Diamer Bhasha Dam needs massive financing and we can extend partial assistance for the project,” US Agency for International Development (USAID) Country Director Jock Conly told The Express Tribune on the sidelines of an agreement signing ceremony for financial assistance for the construction of Waran canal system here on Wednesday.

Conly said the ball was now in Pakistan’s court, which should decide how to deal with the US financing proposal.

Talking to the media after the ceremony, Water and Power Development Authority (Wapda) Acting Chairman Raghib Abbas Shah pointed out that the government was negotiating with different countries, including Russia and China, for financial support for Diamer Bhasha Dam.

“We are working on other proposals as well in case no country promises money for the dam. In this regard, imposition of a surcharge on power consumers is also being considered,” he said.

To cope with power shortage, he said, work on different hydropower projects including Neelum Jhelum was under way.

Speaking on Gomal Zam hydropower project, he said it would start producing electricity by December this year and the dam would begin irrigating agricultural land in March next year. The US has given $80 million for the dam with $12 million released recently.

Abbas also raised the issue of abduction of labour working on the Gomal Zam Dam. “Such incidents may slow the pace of construction work and the government should intervene to get kidnapped workers released.”

National Assembly Deputy Speaker Faisal Karim Kundi, who was also present on the occasion, said he had already taken up the matter with the interior minister and would also meet the president to seek swift measures for the safe release of workers.

Welcoming US assistance, Kundi pointed out that Waran canal system would bring prosperity in the local area and help irrigate barren land.

Earlier, Wapda Acting Chairman Raghib Abbas Shah and USAID Country Director Jock Conly signed the agreement for the canal system.

Addressing the signing ceremony, Conly said USAID would provide $12 million for construction of the 164km-long canal system to irrigate permanently 8,000 acres of land in Tank District of Khyber-Pakhtunkhwa. Waran Canal is part of a larger Gomal Zam irrigation project.

With the addition of Waran Canal, USAID will build a canal system to irrigate 191,000 acres of land that has mostly been barren. The canal system will enable local communities to work on their land, create jobs and improve income of people in the region.

New financiers: US, Japan pledge assistance for Diamer Bhasha Dam

Japan pledges $4 billion worth of machinery, USAID promises $200 million.

In related developments, an official of the Economic Affairs Division (EAD) told a parliamentary panel here on Wednesday that Japan has agreed to provide machinery and equipment worth $4 billion for the Diamer Bhasha Dam. While addressing the panel, he also said that Japan had agreed to cooperate in extending the power generation capacity of the Mangla dam.

While briefing the Senate Standing Committee on Water and Power, the EAD official added that the US Agency for International Development had committed $200 million, and the Islamic Development Bank (IDB) had committed $100 million for the Diamer Bhasha project.

During the briefing, the EAD official ruled out the impression that the Asian Development Bank (ADB) had asked Pakistan to seek a No-Objection Certificate (NOC) from India in order to go ahead with the project.

Senator Zahid Khan, who was chairing the Standing Committee, expressed reservations during the meeting over delays in the implementation of the Diamer Bhasha and Dasu dams. “If there is a problem in obtaining funds for the Bhasha dam, the Water and Power Development Authority should expedite work on the Dasu hydropower project,” Khan said.

The parliamentary panel has also sought an explanation for the slow pace of work on the Dasu power project from concerned authorities. The committee once again instructed water and power officials to expedite work on the Dasu and Diamer Bhasha dams, and to take concrete steps for the timely completion of these projects.

The panel asked officials of the EAD and the Ministry of Water and Power to arrange a meeting with the Foreign Minister, in order to devise a mechanism for obtaining funds for hydel power projects from the Friends of Democratic Pakistan; for which the group had earlier pledged financing.

The committee expressed reservations over lower power production from the Malakand hydel power plant, and pointed out certain flaws in the project. Senator Hamayun Khan Mandokhel said that the project was producing only 23 megawatts (MW) of electricity, in spite of its 81MW generation capacity.

The panel directed the Water and Power Secretary to investigate the reasons behind low power production from different generation projects and fix responsibility on officials, in case they are involved in negligence.

The committee expressed concerns over the National Electric Power Regulatory Authority’s (Nepra) delayed determination of tariff for hydel power generation projects in the country. It asked the Nepra chairman to hold a meeting with the Private Power Infrastructure Board to devise a mechanism for immediate tariff determination and submit a report within 20 days, and to submit a report containing details of all tariff determination applications pending before the authority.

What the US is doing here. They will never do any thing serious to ease Pakistan's energy crisis. They have only jumped in to manipulate the situation. Give the project to China, Japan or Russia.

Something tells me that this is going to piss more Indians off than Chinese.
India is trying to be less reliant on Russia over time so they probably won't care at all.

Diamer Bhasha Dam: ADB faces internal resistance to financing vital project

ADB has refused to take a leading role in a consortium of financiers for Bhasha Dam.

The Asian Development Bank (ADB) has admitted that it is facing internal resistance to plans to finance the multi-billion-dollar Diamer Bhasha Dam because of a lack of consensus among donors.

In a report submitted to the Ministry of Water and Power, water wing of the Water and Power Development Authority (Wapda) quoted ADB Director General Central West Asia Development Klaus Gerhaeusser as saying the bank was committed to financing the Diamer Bhasha project to resolve some of the issues, but it could not provide funds for the entire project.

Gerhaeusser said this during a meeting between ADB delegates and senior government officials including the Wapda chairman in Islamabad on June 28. He outlined policies which asked Pakistan to carry out reforms in the energy and water sector.

According to the report, the ADB has refused to take a leading role in a consortium of financiers for Bhasha Dam, which will have the capacity to produce 4,500 megawatts of electricity.

“It is left to Wapda and the government to arrange a consortium of financiers for the project to which ADB will provide its due share,” the report said, adding the government had shown full commitment to the project.

Gerhaeusser also acknowledged that the bank was facing internal resistance because of absence of consensus among donors, but the report did not elaborate.

In the report, Wapda’s water wing pointed out that arrangement for financing from donor agencies was a big issue. To push ahead with the project, Wapda is also negotiating a loan from the Employees Old-age Benefit Institution (EOBI).

“In addition to financing, boundary dispute between Khyber-Pakhtunkhwa and Gilgit-Baltistan to determine royalty is also a big threat to the construction of the dam,” it said, adding delay in acquisition of land by the local administration was also creating hurdles.

“Frequent interference by local people to press their ‘undue demands’ is creating hurdles in the way of contractor’s activities related to the project’s colony and model village,” the report said.

According to the report, pre-qualification documents for Lot-1, Lot-2 and Lot-3 and the expression of interest (EOI) prepared on the basis of World Bank’s guidelines had been cancelled as required by the ADB for financing the project. Later, the documents and EOI were updated as per ADB guidelines and were ready for submission to the bank for approval.

Earlier, an ADB mission reviewed the project in March 2009. For getting funds, the government met the bank’s pre-condition which called for national consensus as the inter-provincial Council of Common Interests (CCI) unanimously approved the dam on July 18, 2010.

In the last week of December 2011, another ADB mission held detailed talks about the progress on the project as well as financing arrangements. Praising the work done for acquisition of land and resettlement of people, the bank called for upgrading the land acquisition and resettlement plan.

“The ADB also shared a memorandum of understating (MoU) with the
Economic Affairs Division (EAD), stipulating various terms and conditions for financial assistance from the bank. Final draft has been submitted to the EAD,” the report said.

The Economic Coordination Committee (ECC) also considered a summary in June 2011, submitted by the Ministry of Water and Power, for arranging Rs20 billion for the dam and allowed Wapda to raise money with government’s guarantee through term finance certificates or Islamic bonds to be repaid by Wapda from its own resources.

US assures to continue cooperation on Diamir-Bhasha Dam

The United States has assured to continue cooperation with Pakistan for construction of Diamir Bhasha Dam.

It was stated by the visiting US delegation at a meeting with the Federal Minister for Water and Power Chaudhry Ahmed Mukhtar in Islamabad on Tuesday.

The delegation said it is a very important project for Pakistan.

Source (http://www.radio.gov.pk/newsdetail-30580)

US reaffirms assistance for Diamer Bhasha Dam

Diamer Bhasha Dam has been designed to generate 4,500MW of electricity, which Pakistan direly needs, besides storing water for agriculture purposes.

The United States said the financing issue of the multi-billion dollar Diamer Bhasha Dam project will be taken up in the upcoming meeting of the US-Pakistan Economic Working Group next month in Washington.

US Ambassador to Pakistan Richard Olson reaffirmed support to the project during a meeting with Minister for Water and Power Chaudhry Ahmed Mukhtar on Friday and discussed various matters of mutual interest and to enhance bilateral cooperation in the energy sector.

Olson said US will continue to support the people of Pakistan and help improve the local power sector. He said Diamer Bhasha Dam was an important project for future water requirements and to generate cheaper power, adding that US was interested in hydropower projects in Pakistan.

He said that Diamer Bhasha project will be discussed during the US-Pakistan Strategic Dialogue to be held next month in Washington.

The US is assisting Pakistan in various power sector projects such as modernisation of Tarbela and Mangla dams, upgrading the Jamshoro, Guddu, Muzaffargarh thermal plants, providing funding for completion of Gomal Zam Dam and Satpata Dam projects. These energy projects are expected to add 900 megawatts to the national grid by 2013.

Mukhtar appreciated US cooperation and assistance and said that the support will help improve the efficiency of the state-owned power entities. The government, he said, was working on power sector reforms, rehabilitation, upgradation of power generation companies, improvement in operations of distribution companies, distribution of 30 million energy savers, installation of smart metres, improvement in recoveries, controlling power theft and reduction in line losses.

He added that Pakistan was focusing on coal generation and also briefed the US envoy on conversion of thermal plants to coal. It will help save foreign exchange and generate cheaper electricity, he said.

Diamer Bhasha Dam: Turned away from elsewhere, government to now knock on China’s doors

“China may not be able to provide our entire financing needs: however, it can contribute a major portion of funds needed for the Diamer Bhasha dam,” says Himayaullah Khan.

After failing to secure funds for the multibillion dollar Diamer Bhasha Dam from multilateral donors – allegedly due to Indian lobbying – the government has now decided to seek a major portion of the project’s financing from China.

“China may not be able to provide our entire financing needs: however, it can contribute a major portion of funds needed for the Diamer Bhasha dam,” Ministry of Water and Power’s Special Secretary Himayatullah Khan informed a parliamentary panel here on Friday.

The National Assembly’s Standing Committee on Water and Power which met with Syed Ghulam Mustafa Shah in the chair to discuss the project’s financing was also treated to a shocking disclosure: amid periodic delays, the cost of constructing the Diamer Bhasha dam has now shot up to $14.4 billion, against earlier projections of $11.5 billion.

The special secretary also pointed out that the country will have to depend on expensive power from thermal generation plants due to a decline in hydroelectric power generation in the coming month because of canal closures.

“The decline in current power generation is mainly because of a decline in hydel generation, which has dropped to 30% of the total energy mix, against 70% a few years ago,” he said. He noted that power generation cost using furnace oil is Rs17 per unit, hydel Rs1.5 per unit, while gas-based generation costs Rs4 per unit.

“After December 20, the country will be left with no option but to go for expensive power generation through furnace oil and diesel,” Khan said; adding that power generation through diesel will cost a staggering Rs22-27 per unit to the government. He also reminded the panel that power consumers are paying Rs8.88 per unit, whereas Rs3.50 per unit in subsidy is borne by the government.

Committee member Chaudhry Abid Sher Ali alleged that 650 megawatts of power was being exported from Punjab to Karachi, despite a severe energy shortfall in the industrial city of Faisalabad. He also raised the issue of delays in the Nandipur Power Project, which he said had additionally resulted in the shortage of power for industrial consumers in Faisalabad. In response, the special secretary acknowledged the delay, but pointed out that the matter is currently pending in the Supreme Court of Pakistan.

Other members of the committee, including Pir Aslam Bodla and Bilal Yasin, demanded lifting of the ban on collecting power bills in instalments in order to facilitate the poor, who they claimed had “lost their capacity” to pay “huge power bills”. The special secretary agreed to consider this proposal, but said that instalments would be allowed in exceptional cases only, and that current outstanding bills would need to be paid within the due date.

US to provide $3.5 billion for Diamer Bhasha Dam (http://tribune.com.pk/story/488223/us-to-provide-3-5-billion-for-diamer-bhasha-dam/)
As multilateral donors do not take keen interest in financing Diamer Bhasha Dam, the United States has agreed to lend support and provide $3.5 billion for the critical project, which will cost $14 billion and ease growing water and power shortage in the country.

Govt all there life stay fakeeer ! Mag ta always asking for money stupid idiots you can stand on your own feet ! Damn fools ! Come on Imran Khan make it happen inshAllah

http://pakobserver.net/detailnews.asp?id=190169

Saturday, January 05, 2013 - WHILE Chairman WAPDA has said that Neelum-Jhelum hydro project is being given priority despite shortage of funds which in our view is the right step and promote Azad Kashmir economy but it is worrying to note that a huge amount of Rs 24.96 billion rupees collected as surcharge for the project and needed till June this year is not being released.

At the same time Chairman WAPDA Raghib Shah said that funds are not available for the Diamer Bhasha Dam and Skardu hydel projects. Bhasha dam is a mega project and perhaps being delayed as was done in the case of Kalabagh dam under the pretext of shortage of resources. According to a report, funds have been diverted from crucial development projects including the Diamer-Bhasha dam to less important schemes. Though it happens at the time of elections but this should not be done at the cost of projects like Bhasha dam which is considered as a key for the economy of the country. It is astonishing how the allocations made in the Budget and approved by the Parliament were being diverted to less important schemes in some areas at the cost of vital projects. Though it is the foremost duty of the government to ensure availability of allocated resources but the Special Secretary Hamayatullah Khan told the Senate standing committee that no body was ready to fund the hydel power projects of Bhasha and Skardu dams. Similar attitude in the past towards major projects led to the present energy crisis and therefore we would impress upon the Government to stop diverting funds as this would be a criminal negligence for which the country would have to pay high price.

http://pakobserver.net/detailnews.asp?id=190169

Saturday, January 05, 2013 - WHILE Chairman WAPDA has said that Neelum-Jhelum hydro project is being given priority despite shortage of funds which in our view is the right step and promote Azad Kashmir economy but it is worrying to note that a huge amount of Rs 24.96 billion rupees collected as surcharge for the project and needed till June this year is not being released.

At the same time Chairman WAPDA Raghib Shah said that funds are not available for the Diamer Bhasha Dam and Skardu hydel projects. Bhasha dam is a mega project and perhaps being delayed as was done in the case of Kalabagh dam under the pretext of shortage of resources. According to a report, funds have been diverted from crucial development projects including the Diamer-Bhasha dam to less important schemes. Though it happens at the time of elections but this should not be done at the cost of projects like Bhasha dam which is considered as a key for the economy of the country. It is astonishing how the allocations made in the Budget and approved by the Parliament were being diverted to less important schemes in some areas at the cost of vital projects. Though it is the foremost duty of the government to ensure availability of allocated resources but the Special Secretary Hamayatullah Khan told the Senate standing committee that no body was ready to fund the hydel power projects of Bhasha and Skardu dams. Similar attitude in the past towards major projects led to the present energy crisis and therefore we would impress upon the Government to stop diverting funds as this would be a criminal negligence for which the country would have to pay high price.

They should be Hanged or chop there heads with sword like in Saudi Arabia ! The govt is biggest choor around damn you Zardari Gardari ! Go Imran Khan all the way isshAllah.

Diamer Bhasha Dam: World Bank, not ADB, presses for seeking Indian NOC
Published: March 1, 2013

A move by the Asian Development Bank to bring World Bank on board for co-financing Diamer Bhasha Dam backfired when the World Bank instead asked the ADB to first seek a no-objection certificate from India – a condition that has derailed the project.

The ADB has so far faced criticism for asking for Indian NOC at the eleventh hour when Pakistan has already met agreed prerequisites. Background discussions with officials of multilateral lenders and Pakistani officials concerned revealed that it was actually the World Bank that set the condition of NOC and also asked the ADB to press for the same.

The plan was to seek $2.5 billion each from the ADB, Pakistan’s largest creditor, and the World Bank, the second largest creditor.

“The ADB will never itself impose a condition that is tantamount to undermining sovereignty of the country and seems stupid,” said an official requesting anonymity. He said the ADB was trying to manage the situation and resisting World Bank pressure.

Compared to initial estimates of $11.2 billion, the revised cost of Diamer Bhasha Dam is touching $14 billion with construction work yet to start. Lately, Japan has come forward with a $4 billion package for procurement of machinery, but still the lead financier is missing.

At a time when the ADB was taking up the matter with the World Bank, Pakistan and India had already locked horns over Delhi’s move to divert water to generate electricity. Pakistan invoked an arbitration clause of the Indus Waters Treaty after both the countries failed to resolve disputes over Baglihar and Kishanganga hydropower projects.

Last week, Pakistan lost Kishanganga case in the court of arbitration. The Indus Waters Treaty, inked between India and Pakistan, provides for appointment of a neutral expert by the World Bank as a last option to resolve water disputes between the two countries.

According to another official, the Indian lobby in the World Bank actually prevailed over the management that placed the NOC condition. The bank took the position that since it was an arbitrator between India and Pakistan, financing for Diamer Bhasha Dam would compromise its position.

The ADB has managed to get its board of directors approve a couple of projects in Azad Jammu and Kashmir and insists that it can do the same when the need arises. Yet, it does not solve the equation.

The other day, the ADB’s Director of Energy Division of the Central and West Asia Department, Rune Stroem, stated that right now Pakistan does not have the needed fiscal space to finance mega projects like Diamer Bhasha Dam. Furthermore, the energy sector over the last few years has rotten away and financing of such projects should be seen in broader macroeconomic perspectives.

The way the government has handled the construction of Neelum Jhelum hydropower project, which is far smaller compared to Diamer Bhasha, has further made the ADB wary.

Owing to delays and kickbacks in award of contracts for procurements, the cost of the project has ballooned from Rs84.5 billion to a staggering Rs274.8 billion. ADB officials said the bank did not want to finance a project which remains incomplete after years.

What is going on between the two international lenders does not absolve the government of its responsibilities. Officials said the government could have fought back against the Indian lobby by approaching the Americans who have expressed interest in financing the dam.

Its high time we looked at internal sources of funding to get mega projects up and running. There are three options which the government might look at in such a case:

1. Increase taxes to generate higher revenues and divert the additional funds to the construction of the projects.
2. Create an additional levy/fund for the construction of the dams and collect them through water and power bills and/or ask for direct donations (teddy paisa tanks come to mind from the Pak-Ind war)
3. Ask the entire industrial sector (and huge local companies such as Nishat Group, Engro group etc) to pool in resources and give them revenue sharing avenues to get returns on their investment, win-win situation.

However, these options are not without their complications:
Taxes and levies are already being enforced without much succeess
Donations and voluntary contributions require someone trust worthy at the helm of affairs
The industrialists are already moving to Bangladesh and Sri Lanka, not sure how much would be interested in conducting business in Pakistan rather than just conducting business anywhere in the world.

Diamer Bhasha Dam, Gwadar port in quake-prone zone (http://tribune.com.pk/story/526826/diamer-bhasha-dam-gwadar-port-in-quake-prone-zone/)
Two top projects of the country – the gigantic but yet-to-be-built Diamer Bhasha Dam and the strategic Gwadar port – are vulnerable and face a high risk of destruction as both are in the earthquake-prone zone.
“We should not construct dams upstream of Tarbela Dam in Zone-4 where earthquake of a high magnitude of 9 can strike,” Geological Survey of Pakistan Chief Dr Imran Ahmed Khan suggested during a briefing to the Senate Standing Committee on Petroleum and Natural Resources, which met here on Tuesday under the chairmanship of Senator Muhammad Yousaf.
He said some areas of Islamabad and Karachi also fell in Zone-4 where earthquake of a high magnitude could hit, adding the whole area of Gwadar port was also in this zone. The Singhar Housing Scheme of Gwadar was also covered by Zone-4.
“We have submitted reports about the possibility of an earthquake to all relevant agencies,” he said.
http://pullquotesandexcerpts.files.wordpress.com/2013/03/dr-imran-ahmed-khan.jpg?w=625
“In future, an earthquake with a magnitude of 9 may rock Zone-4 where Tarbela Dam has been built and another big reservoir over the dam will also be affected by the disaster,” he said, adding construction of water reservoirs like Diamer Bhasha Dam in the area could result in a damaging incident, similar to the Attabad lake case.
Khan claimed that no agency had ever contacted the Geological Survey of Pakistan to seek clearance before planning any project. His department had sent several reports to different agencies about environmental hazards, but he said no action had been taken.
He, however, failed to respond when committee members asked how India was building dams in held Kashmir if Bhasha Dam was in an earthquake-prone zone.
Panel members recalled that the construction of Diamer Bhasha Dam got delayed as donors were reluctant to provide funds and stressed that Pakistan was facing an energy crisis and the government should build small dams.
“After the 18th Constitution Amendment, provinces have been allowed to construct small dams and they should work on them to tackle the energy crisis,” a panel member suggested.
Khan revealed that Kabul River had rick and rock content and people of Khyber-Pakhtunkhwa living along the river had been suffering from cancer and other diseases because of drinking its water from generation to generation.
“We have noticed that 83% of children are born with deformity in the area of Akora Khattak due to consumption of water from Kabul River,” he said and added some cases of deformity were also found in Punjab.
Briefing about Reko Diq gold and copper mine in Balochistan, Khan told the committee the mine held reserves of trillions of dollars and said Swat also had world’s most precious gemstones in its mines.