ISLAMABAD: To meet the foreign financing needs of Diamer Bhasha and Mohmand dams, the government is likely to give Pakistan Water & Power Development Authority (WAPDA) the go ahead for the issuance of $500 million Eurobonds in the Economic Coordination Committee (ECC) meeting.
The ECC meeting will be held under the chairmanship of Dr Abdul Hafeez Shaikh on Wednesday. According to the agenda of the meeting, the committee will review the financial cost of Diamer Basha and Mohmand dams and the possible arrangement of financing these projects through local and foreign financial institutions.
The government already awarded a Rs 442 billion contract to a joint venture of China Power and Frontier Works Organisation (FWO) for the construction of the Diamer-Bhasha dam. The total cost of Diamer Basha Dam estimated around $14 billion and it will have a capacity to generate 4800 MW of electricity. The Chinese state-run firm holds 70% and the FWO, a commercial arm of the Armed Forces of Pakistan, 30% share in the consortium. The contract covers construction of a diversion system, main dam, access bridge and the 21MW Tangir hydropower project.
The eight million acre feet (MAF) reservoir with 272-metre height will be the tallest roller compact concrete (RCC) dam in the world. It will have a spillway, 14 gates and five outlets for flushing out silt. The diversion system involves two tunnels and a diversion canal — all three having one kilometre length each. The bridge — a box girder structure — under the contract will be constructed downstream of the dam structure while the 21 MW power plant will be built to meet energy requirements of the project during construction.
The cost of constructing Mohmand Dam has been estimated to be $1.9 billion and it will have a capacity to generate 800 MW of electricity. WAPDA would provide 67% fund for the project while remaining 37% would be provided by the government. The multi-purpose dam will be ready before the flood season of 2024 as work is in full swing.
The contract for civil and electro-mechanical works of Mohmand Dam Project had already been awarded to a joint venture comprising the China Gezhouba Group of Companies (CGGC) of China and DESCON of Pakistan.
The other issues on the agenda of ECC includes allocation of funds amounting to Rs 500 million for Prime Minister’s Low Income Housing Scheme; Repayment of Government Holdings Pvt Ltd (GHPL) loan and future funding requirements for expenditure in relation to ISGSL gas import and infrastructure projects from GIDC. The other agenda items include amendment in Master Plan for the Establishment of new terminals on BOT basis on seaports; Karachi Transformation Plan and shelving of LPG Air Mix Projects by Sui companies.
