The federal government has decided to take the World Bank (WB) on board for consultation on the proposed change in Diamer-Bhasha dam design for which Wapda is demanding $2.06 billion cost escalation, official sources told Business Recorder.
The decision was taken at a meeting on Friday with Minister for Water and Power Liaquat Ali Jatoi in the chair convened to discuss progress on the construction of Bhasha and Akhori dams.
Jatoi took strong position in the meeting and asked Wapda to come up with a report on complete engineering design and comparative statement of detailed activity-wise cost estimate of the Diamer-Bhasha dam project and submit the same immediately to Ministry for further review.
"After all I am answerable to higher authorities, first convince me on cost escalation and redesigning along with international rates, so that I could plead the case before the President and the Prime Minister," the sources quoted the minister as saying in the meeting.
He was also of the view that the World Bank should be taken on board, as the government has to approach the bank for funding of this mega project. The meeting also decided to set up an independent environmental assessment and resettlement cell exclusively for Bhasha dam project for which one expert will be hired from the market and one concerned senior officer from Wapda. The meeting was informed that the progress of the work is on schedule and most of the infrastructure is being put in place. The sources said that the estimated cost of Basha dam was $ 6.5 billion in 2004, which would reach $ 8.56 billion in 2008.
The issue of detailed progress of Akhori dam also came under discussion. Earlier the final feasibility report of the dam has been circulated to the provinces. There were some observationsrecommendations by the provinces for improvement of the design and implementation strategy. The Minister directed WAPDA to immediately hold meetings with the provinces to remove their apprehensions on the feasibility study on Akhori dam project, so that the work on detailed engineering design to be commenced in the shortest possible time to enable implementation as approved by the Cabinet.
The total cost of construction of Kalabagh, Diamer-Basha and Akhori dams had been estimated at Rs 1.027 trillion, and the federal government will require Rs 432 billion in foreign funds for the completion of these projects. These estimates were considered by the Central Development Working Party (CDWP) last October.
The meeting also discussed import of power from Iran. The meeting was informed that 39 MW electricity was already being imported from Iran for the coastal areas of Balochistan while agreement for import of 100 MW power with Iran has already been signed. It was also decided that a high level delegation, led by Federal Minister for Water and Power will visit Iran in the first week of April to discuss import of 1000 MW from Iran.
The delegation will also discuss utilisation of Iranian expertise in the construction of dams in Pakistan. The meeting was attended by the Secretary Ministry of Water and Power, Advisor ministry of Water and Power, Chairman, Wapda, Members of Wapda and senior officials of both Ministry and the utility.