Dasu Hydropower Project: Wapda signs Rs52.5 bn contract with China for electro-mechanical work

ISLAMABAD: Pakistan’s Water and Power Development Authority (Wapda) has signed a Rs52.5 billion contract with a joint venture of GE Hydro China and Power China Zhongnan Engineering Corporation for electro-mechanical works of Dasu Hydropower Project (Stage-I).

Dasu Hydropower Project General Manager /Project Director Anwarul Haque and GE Deputy General Manager – the authorised representative of GE-PC JV - Aijun Xu signed the contract on behalf of their organisations here on Monday.

This contract includes design, supply and installation of six Francis turbines, generators, main transformers, generator and station service switchgear along with related equipment.

French Ambassador, Chinese and the US diplomats, Water Resources Federal Secretary Muhammad Ashraf and Wapda Chairman Lt Gen (R) Muzammil Hussain also attended the event.

Wapda Chairman Lt Gen (R) Muzammil Hussain said that today is an important day for Dasu Hydropower Project. The project is of vital importance to add a major quantum of hydel electricity to the National Grid in order to minimise reliance on expensive thermal generation and lower the power tariff, he further said.

Federal Secretary of Ministry of Water Resources Muhammad Ashraf said the Ministry is committed to optimal utilization of hydropower resources for generating low-cost and environment-friendly electricity to meet the energy requirements of the country for economic stability and social development. Dasu Hydropower Project, he said, is a manifestation of this commitment. He appreciated Wapda Chairman for transforming Wapda into a pro-active and dynamic organisation, adding that Wapda has been steadfastly moving to harness water and hydropower resources in Pakistan.

Earlier, French Ambassador Marc Barety and World Bank Country Director Illango Patchamuthu also addressed the ceremony.

Dasu Hydropower project will have total installed capacity of 4320 Megawatts of electricity with 12 generating units and is among the priority projects under the National Water Policy. The project will be completed in two stages – each stage having a generation capacity of 2160 MW.

This is run of the river project being constructed by Wapda on River Indus upstream of Dasu Town in Kohistan District of Khyber Pakhtunkhwa (KP) province. In Budget 2019/20, the federal government has allocated Rs55 billion for this project.

At present, stage-I of the project is underway, while electricity generation from the project is expected to commence in 2024-25. Stage-I will contribute more than 12 billion units per annum to the National Grid. The stage-II will also provide another 9 billion units to the system every year.

The World Bank is partially providing funds for construction of the stage-I of Dasu Hydropower Project to the tune of US $588.4 million and Partial Credit Guarantee (PCG) of US $460 million. The remaining funds are being arranged by Wapda from its own resources and with the sovereign guarantee of the government of Pakistan.