Diamer-Bhasha Dam project on the back burner
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By Engr Hussain Ahmad Siddiqui
Nothing
seems to be moving towards construction of the multi-purpose
Diamer-Bhasha Dam project whose foundation stone was laid by
President Musharraf in April 2006. The project scheduled for
completion as envisaged in the Water Vision 2015, has not
made any physical progress.
It is a typical case of tunnel vision, myopic planning and
lack of political will on the part of all concerned. For
these reasons, the project has run into snags from its very
initial stages, though the ECNEC gave the go-ahead for
construction of project in November 2008.
There are various milestone activities to be completed
before starting work on the construction of the mega
project. First, land covering an area of 110 km has to be
acquired, which has not been done as yet.
The approval for land acquisition and resettlement of the
dam-construction affectees was approved by the ECNEC almost
two years back. The government however released an amount of
one billion rupees in June this year for the purpose, and
that too against the original estimates of Rs60 billion,
after the ECC approved, on June 29, 2010, the parameters for
compensation and resettlement of the affectees.
Ironically, Wapda project site office in Chilas (Diamer) is
not functioning since February as it was ransacked by a mob.
Second, necessary infrastructure has yet to be developed.
This entails construction of a new bridge at Thakot (Battagram
district), upgradation of 323 km of the Karakoram Highway (KKH)
and re-alignment of another 100 km of KKH that would be
submerged due to impounding of dam reservoir. The
strengthening of road communications is essential for
transportation of heavy machinery required to be mobilised
by the contractor at site to commence construction work.
These works having a financial outlay of Rs4.5 billion, are
the responsibility of the National Highway Authority (NHA)
that has done nothing physically as yet. The corresponding
proforma PC-1 was approved by the ECNEC in August 2009. The
only construction to be initiated shortly by Wapda is for
the infrastructure development of the project colony in
Thore valley (Diamer). The construction works include
residences, hospitals, schools, related facilities and
services. Bids were received in May 2010 that are under
evaluation..
The initial feasibility study was conducted in 1984 by
Montreal Engineering Co of Canada. But it was only in 2002
that consultants were appointed for undertaking a detailed
project study. NEAC Consultants, a consortium of Pakistani
consultants with Binnie and Partners of the UK, completed
their final report in August, 2004, confirming
techno-economic feasibility of the project. They also
carried out engineering design and prepared project tender
documents.
Consequently, Wapda invited expression of interest for
carrying out detailed design and engineering and review of
work done earlier. For reasons of maintaining project
parameters of earlier investigations, and of short lead
time, it is standard international practice to prefer for
the job the consultants who originally carried out the
feasibility study and basic designing. This was not done,
though NEAC Consultants offer was considered technically and
commercially responsive against tenders.
The contract was awarded in July 2005 to Lahmeyer
International of Germany, under a joint venture known as
Diamer-Bhasha Consultants. They completed project detailed
engineering in March 2008 after review of previous data,
studies and investigations done by NEAC Consultants.
Diamer-Bhasha Consultants suggested slight change of dam
site from the originally identified location, reportedly on
the intervention of the then federal minister for water and
power, who ensured a huge share of the net hydro profit to
his province too. According to the revised plan, the two
underground powerhouses will be constructed, one under the
right bank in the Gilgit-Baltistan and the other under the
left bank in Khyber Pakhtunkhwa.
As originally conceived, each power house will have six
generating units of 375 MW each, with a total capacity of
2,250 MW. Thus the issue of royalty between the two
provinces has also cropped up. Interestingly, the camp of
main contractor for the project is to be located in Khyber
Pakhtunkhwa. The government somehow ignored the fact that
the revised site location is in highly seismic zone. This
would result in inflated project cost due to revision of
design, providing more business to the consultants.
The consultants have also revised dam height from original
282 meter to 272 meter, resultantly lowering water storage
capability of the dam from 7.3 MAF to 6.4 MAF live storage
capacity. Terms of reference (TOR) include, inter alia,
prequalification of contractors, evaluation of bids and
award of contract, separately for five different lots for
construction of project. These include dam construction,
underground works and structures, hydro-mechanical
equipment, power generating equipment and electrical
equipment.
Completion of these services by the consultants is not
feasible within foreseeable future as project funding is not
available. The consultants, working on third extension of
their term, would continue to receive fee for an indefinite
idle period. All this will add to increase in project cost
and raise power tariff, already too high. The tariff
calculated is nearly 13 cents per kwh, as the electricity
consumers would be required to pay water-use charges in the
tariff, according to reports. The proposed tariff is even
more than that of thermal power IPPs.
Revised estimated cost of base project is $8.5 billion as
approved by the ECNEC on August 20, 2009. Total project cost
however, including compensation for resettlement and
modifications of KKH, is anticipated to be $11.34 billion on
completion. The country having continued resource
constraints is unable to proceed with the project without
external financial assistance. The government’s request to
the World Bank for $5 billion funding for project is pending
since October 2007. Asian Development Bank (ADB) has agreed,
in principle, in February 2009, to partially finance the
project.
ADB’s pre-condition of having national consensus for its
funding has been met as the Council of Common Interests
(CCI) has approved the project on July 18, 2010. Islamic
Development Bank (IDB) is likely to contribute towards
project financing. Earlier, the government had asked the
Friends of Democratic Pakistan to provide $5 billion but
there is no positive response. Only after finalisation of
project financing, Wapda has to initiate action for inviting
bids for various works and to appoint consultants for
design, construction supervision and contract
administration.
The project is not likely to be completed by the year
2019-20, given the present status of project-related
activities. Strategic importance of Diamer-Bhasha Dam
project and its complex and critical characteristics, demand
the government to accord top priority to resolving pending
related-issues. Likewise, the arrangements for financing
from the donor agencies need to be expedited.
Courtesy: The DAWN
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Pakissan.com;
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