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Bureaucratic wrangling: Govt withdraws Dasu project from ECNEC agenda
By Our Correspondent
Published: March 7, 2014
ISLAMABAD:
The $7.5 billion Dasu hydropower project that is given preference even over the Diamer Basha dam is becoming a victim of bureaucratic wrangling, as the federal government withdrew it at the eleventh hour from the agenda of the highest project approval body due to incomplete work.
The federal government decided to take out the $7.5-billion Dasu hydropower project from the agenda of the Executive Committee of the National Economic Council (Ecnec), just hours before the scheduled meeting, which was held on Thursday with Finance Minister Ishaq Dar as its chair.
The federal government had to withdraw the agenda after the Ministry of Water and Power tried to play smart and submitted the revised project to Planning Commission late Wednesday night. The move was aimed at giving virtually no time to the Planning Commission to review the voluminous revised documents ahead of the Ecnec meeting, according to officials privy to the development.
According to the rules, the Ministry of Planning is required a minimum of two weeks’ time to technically and financial evaluate any project documents.
After consultations with Finance Minister Dar, the Planning Ministry decided to withdraw the project, according to officials. They said Ministry of Water and Power again did not address all the concerns.
Earlier, on February 13, Ecnec had deferred a decision on the 4,600-megawatt Dasu hydropower project after finding its cost exorbitantly higher at Rs735 billion. But yet again, the Ministry of Water and Power appeared reluctant to address the concerns despite repeated warnings.
Before that, the Central Development Working Party (CDWP), a body that approves projects costing up to Rs1 billion and recommends big ones to Ecnec for approval, had conditionally recommended the project with a directive to the Ministry of Water and Power to cut its cost. It also constituted a committee to revise the cost estimate.
After coming into power, the PML-N government decided to first construct the Dasu hydropower project after it faced difficulties in arranging funds for the $12 to $13 billion Diamer Basha dam.
Ecnec on Thursday approved three projects having accumulative cost of Rs67 billion. It approved the Kurram Tangi Multipurpose Dam Stage-1 (Kaitu Weir Irrigation and Power) Project, located in North Waziristan Agency Fata, at a reduced cost of Rs12.7 billion. The USAID has given Rs10 billion grant for the project. The main objective of the project is said to provide irrigation water supply to bring 16,380 acres of land under cultivation in Fata and generate 18.9MW of electricity.
Ecnec also approved the Sindh Water Sector project at a cost of Rs30.4 billion including IDA loan of Rs28.8 billion. The Sindh government will return the IDA loan from their own resources and reflect its financing in their provincial ADP. The objective of the project is to improve the effectiveness and operational efficiency of water distribution by ensuring the safety of the canal system and delivering due share of water to the farmers at the tail end of the irrigation system.
Ecnec also approved the Revised PC-I of Gomal Zam Multipurpose Project at a revised cost of Rs20.6 billion which includes USAID grant in aid of Rs10.8 billion. The main objective of the project is to harness the flow of water and conserve the perennial flow for providing assured irrigation water supply of 848 cusecs (24 cumecs) to irrigate 191,139 acres of land, including 28,053 acres additional land which falls under the command of Waran Canal System and generate 17.4MW electricity.
Ecnec approved Gomal Zam Command Area Development and On-Farm Water Management for High Value and High Efficiency Agriculture Project, located in Dera Ismail Khan and Tank Districts, at a rationalised cost of Rs3.7 billion including USAID grant in aid of Rs2.2 billion.
Published in The Express Tribune, March 7th, 2014.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
By Our Correspondent
Published: March 7, 2014
ISLAMABAD:
The $7.5 billion Dasu hydropower project that is given preference even over the Diamer Basha dam is becoming a victim of bureaucratic wrangling, as the federal government withdrew it at the eleventh hour from the agenda of the highest project approval body due to incomplete work.
The federal government decided to take out the $7.5-billion Dasu hydropower project from the agenda of the Executive Committee of the National Economic Council (Ecnec), just hours before the scheduled meeting, which was held on Thursday with Finance Minister Ishaq Dar as its chair.
The federal government had to withdraw the agenda after the Ministry of Water and Power tried to play smart and submitted the revised project to Planning Commission late Wednesday night. The move was aimed at giving virtually no time to the Planning Commission to review the voluminous revised documents ahead of the Ecnec meeting, according to officials privy to the development.
According to the rules, the Ministry of Planning is required a minimum of two weeks’ time to technically and financial evaluate any project documents.
After consultations with Finance Minister Dar, the Planning Ministry decided to withdraw the project, according to officials. They said Ministry of Water and Power again did not address all the concerns.
Earlier, on February 13, Ecnec had deferred a decision on the 4,600-megawatt Dasu hydropower project after finding its cost exorbitantly higher at Rs735 billion. But yet again, the Ministry of Water and Power appeared reluctant to address the concerns despite repeated warnings.
Before that, the Central Development Working Party (CDWP), a body that approves projects costing up to Rs1 billion and recommends big ones to Ecnec for approval, had conditionally recommended the project with a directive to the Ministry of Water and Power to cut its cost. It also constituted a committee to revise the cost estimate.
After coming into power, the PML-N government decided to first construct the Dasu hydropower project after it faced difficulties in arranging funds for the $12 to $13 billion Diamer Basha dam.
Ecnec on Thursday approved three projects having accumulative cost of Rs67 billion. It approved the Kurram Tangi Multipurpose Dam Stage-1 (Kaitu Weir Irrigation and Power) Project, located in North Waziristan Agency Fata, at a reduced cost of Rs12.7 billion. The USAID has given Rs10 billion grant for the project. The main objective of the project is said to provide irrigation water supply to bring 16,380 acres of land under cultivation in Fata and generate 18.9MW of electricity.
Ecnec also approved the Sindh Water Sector project at a cost of Rs30.4 billion including IDA loan of Rs28.8 billion. The Sindh government will return the IDA loan from their own resources and reflect its financing in their provincial ADP. The objective of the project is to improve the effectiveness and operational efficiency of water distribution by ensuring the safety of the canal system and delivering due share of water to the farmers at the tail end of the irrigation system.
Ecnec also approved the Revised PC-I of Gomal Zam Multipurpose Project at a revised cost of Rs20.6 billion which includes USAID grant in aid of Rs10.8 billion. The main objective of the project is to harness the flow of water and conserve the perennial flow for providing assured irrigation water supply of 848 cusecs (24 cumecs) to irrigate 191,139 acres of land, including 28,053 acres additional land which falls under the command of Waran Canal System and generate 17.4MW electricity.
Ecnec approved Gomal Zam Command Area Development and On-Farm Water Management for High Value and High Efficiency Agriculture Project, located in Dera Ismail Khan and Tank Districts, at a rationalised cost of Rs3.7 billion including USAID grant in aid of Rs2.2 billion.
Published in The Express Tribune, March 7th, 2014.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
