Wapda seeks Rs200 bn in next budget

ISLAMABAD: Wapda has sought Rs 200 billion allocations for water sector in the upcoming budget including Rs35 billion for kick-starting physical construction of much-awaited Diamer Bhasha dam from next fiscal year, The News has learnt.

“Keeping in view resource constraints being faced by the country, the government cannot meet required budgetary allocations for whole water sector. However, the allocation for Bhasha dam will be proposed in the range of Rs 25 to 30 billion in the upcoming Public Sector Development Program (PSDP) for 2018-19,” official sources confirmed to The News here on Monday.

The Planning Commission’s water sector, the official said, proposed allocation of Rs100 billion for water sector in the upcoming budget. “We have proposed more allocation for Bhasha dam,” said the official and added that there was need to allocate more resources for Bhasha dam instead of distributing meager resources for other dams simultaneously.

Earlier, the Planning Commission within internal discussions proposed to the government either to kick-start Bhasha dam from its own resources or launch Chashma-5 nuclear power plant. “It will be unviable to start both Bhasha and C-5 simultaneously,” added the official.

The Ministry of Finance had given Indicative Budget Ceiling (IBC) to the tune of Rs750 billion including Rs645 billion for all ministries/divisions and departments in shape of PSDP and Rs105 billion for special programmes which would be executed by Finance Division including Temporarily Displaced Persons (TDPs) and others. The government had allocated Rs1001 billion for federal share of PSDP in the outgoing fiscal year but after holding consultation with the IMF through Post Programme Monitoring (PPM) both sides had agreed for slashing down the PSDP to the tune of Rs800 billion for the outgoing fiscal year 2017-18.

However, the government had abolished discretionary programmes from the next budget 2018-19 which were being executed through PM or parliamentarians. “Finance Ministry proposed allocation of Rs10 billion for Gas Infrastructure Development in the coming budget against allocation of Rs25 billion in the last budget. No penny could be utilised on this account in the outgoing fiscal year,” said the official.

The government had unbundled Bhasha dam into two separate categories and first phase of construction of water reservoir will be accomplished with more estimated cost of Rs510 billion. The government had already incurred expenditures of Rs140 billion to procure land at Diamer Bhasha dam and remaining cost of Rs510 billion will be managed through government’s PSDP, Wapda’s own resources, commercial borrowings and other avenues. So the total cost of physical construction has been estimated at Rs649 billion.

After completion of first phase of physical water reservoir of Bhasha dam, the investment will be sought to install power houses to generate 4500 MW electricity. In the wake of financial constraints, the government unbundled construction of Bhasha dam into two separate categories including physical work and installation of power generation and decided to complete construction of reservoir first and then investment will be sought for placing power houses.

For first phase the government on Monday cleared construction of physical work of Bhasha dam with revised cost of Rs649.357 billion. The cost of the project has been slashed down from earlier approved cost of Rs894.257 billion to Rs649.357 billion and the project will be accomplished in nine years period.

Out of total revised estimated cost of Rs649 billion, the government will generate Rs496.148 billion through local component while Rs153 billion will be managed through foreign exchange component.

The Diamer Bhasha Dam Project (DBDP) site is located on Indus River, 315 km upstream of Tarbela dam, 180 km below the town of Gilgit and 40 km downstream of Chilas, the district headquarters of Diamer, Gilgit-Baltistan (GB). The project lies in districts of Kohistan, KP and Diamer, GB.

Initial feasibility study for dam was carried out by Monenco, Canada in 1984. Detailed project feasibility report was carried out by a joint venture of foreign and local consultants (NEAC) in 2004. In 2008, a third study for detailed engineering design & tender documentation was carried out by another joint venture of foreign and local consultants (DBC). The objectives of this mega dam project envisages as water storage, flood control and power generation.

The storage capability of Pakistan will be increased from 30 days to 48 days after construction of this reservoir. Further, the construction of dam part will make power generation facilities an attractive future investment and will in turn add 4500 MW of clean energy into the national grid.

This Bhasha dam project was approved unanimously by Council of Common Interest (CCI) on 18-7-2010 for national consensus. The Gilgit Baltistan Environmental Protection Agency (EPA) granted the environment NOC on 30-4-2014 whereas under process with KP EPA.