Dasu dam: Chinese firm fails to secure WB approval for project bidding

[Devil Soul]

Dasu dam: Chinese firm fails to secure WB approval for project bidding
By Hasnaat Malik
Published: September 11, 2016
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“The delay has already escalated the total cost of the project manifold which will definitely burden Wapda, as well as the common taxpayer,” the judge noted. PHOTO: FILE

ISLAMABAD: The World Bank has refused to entertain a Chinese firm’s plea, seeking its early intervention in the bidding process regarding the construction of 4,320MW Dasu hydropower project on the Indus River.

The bank has, however, advised Messrs Power Construction Corporation of China Limited (PCCCL) to approach Islamabad and the Water and Power Development Authority (Wapda) for the bidding process of Dasu dam to be built in Kohistan district of Khyber-Pakhtunkhwa (K-P).

World Bank lowers rating of Dasu hydel project

The Supreme Court is adjudicating the PCCCL petition, seeking a direction for Wapda not to publicise the outcome of the pre-qualification of the bidding for the project’s construction.

The top court on August 25 provided an opportunity to the Chinese firm to approach the World Bank through an appeal against the decision of Wapda of ousting the company from awarding contract of the construction of the civil works of Stage-I of the dam.

While adjourning the case till the third week of September, the top court on September 2, said it would pass an appropriate order after the WB’s [positive or negative] decision came out.

Counsel for PCCCL Salman Aslam Butt on Saturday filed a miscellaneous application in the apex court, wherein the WB’s one-page written response was also attached for the court’s consideration.

Hydropower project: Chinese firm’s plea to halt bidding process for dam rejected

During the last hearing on September 2, Justice Dost Muhammad Khan was of the view that further delay in the construction of the dam would aggravate the problems, adding the development of Dasu dam should have been completed a decade ago.

“The delay has already escalated the total cost of the project manifold which will definitely burden Wapda, as well as the common taxpayer,” the judge noted.

Published in The Express Tribune, September 11th, 2016.

 

[That Guy]

They likely have a back up plan, I wouldn't worry too much about it; This just seems to be another delay in the bidding process.

 

[Devil Soul]

They likely have a back up plan, I wouldn't worry too much about it; This just seems to be another delay.

Any extra Delay come with extra total cost ..... other then that I agree that backup plan will be in place, but will it reduce the total cost is to be seen

 

[Great Sachin]

Funny..Chinese are shying to invest their own money

 

[That Guy]

Any extra Delay come with extra total cost ..... other then that I agree that backup plan will be in place, but will it reduce the total cost is to be seen

The cost will likely go up, but better late than never.

Funny..Chinese are shying to invest their own money

Not really, from what I know, this wasn't to secure funding. It was to intervene in the bidding process.

 

[$@rJen]

Why are they seeking at WB when they can get it from the Chinese AIIB or other chinese banks??

 

[Acknowledge]

Why are they seeking at WB when they can get it from the Chinese AIIB or other chinese banks??

Will they be able to get money from AIIB?
Considering that India is a founder member.

Any idea of what is the voting share of countries in AIIB? And what it takes to block proposals?

Not really, from what I know, this wasn't to secure funding. It was to intervene in the bidding process.

The Chinese have no dearth of money. They can likely easily finance it from their Exim bank. Probably their back up plan in any case.

 

[That Guy]

The Chinese have no dearth of money. They can likely easily finance it from their Exim bank. Probably their back up plan in any case.

Which they are, in the tune of $33 billion or the total $46 billion, which is to be spent exclusively on energy projects. The firm had problems with the bidding process, not the funding.

 

[$@rJen]

Will they be able to get money from AIIB?
Considering that India is a founder member.

Any idea of what is the voting share of countries in AIIB? And what it takes to block proposals?


The Chinese have no dearth of money. They can likely easily finance it from their Exim bank.

Ofcourse they can.... if India blocks it then how much time it would take for the Chinese to block Indian loans!!!! You have a better chance of securing a loan in AIIB than WB if the project is run by the chinese..

Of course they can but then why are they not doing it??

 

[Super Falcon]

Pakistan should avoid delays we are going to be needing energy to our growth if leaders stop corruption gwadar get working within 5 years poor people will atleast be lower middle class

Build many dams as u can

 

[Acknowledge]

Ofcourse they can.... if India blocks it then how much time it would take for the Chinese to block Indian loans!!!! You have a better chance of securing a loan in AIIB than WB if the project is run by the chinese..

Which in turn would lead to India blocking all Chinese projects everywhere.

Which would bring the bank to a halt. Something the Chinese would not want. They want this to challenge the WB and ADB. That can't happen if Chinese block Indian proposals and India blocks Chinese proposals.

They will take a hit on Pakistani projects in P o K and in turn India will prolly accept projects in Pakistan other than P o K.

 

[That Guy]

Which in turn would lead to India blocking all Chinese projects everywhere.

Which would bring the bank to a halt. Something the Chinese would not want. They want this to challenge the WB and ADB. That can't happen if Chinese block Indian proposals and India blocks Chinese proposals.

They will take a hit on Pakistani projects in P o K and in turn India will prolly accept projects in Pakistan other than P o K.

I'm pretty sure Pakistan is also a founding member of AIIB.

Just checked, it is.

 

[Acknowledge]

I'm pretty sure Pakistan is also a founding member of AIIB.

Just checked, it is.

Which is why I asked for the voting share. And what is required to defeat a proposal. Not every member is equal.

China would likely have the largest, but what about the rest.

 

[That Guy]

Which is why I asked for the voting share. And what is required to defeat a proposal. Not every member is equal.

China would likely have the largest, but what about the rest.

I'm not quite sure, but I doubt India would interfere with projects in Azad kashmir, regardless of how large it's vote share is.

 

[$@rJen]

Which in turn would lead to India blocking all Chinese projects everywhere.

Which would bring the bank to a halt. Something the Chinese would not want. They want this to challenge the WB and ADB. That can't happen if Chinese block Indian proposals and India blocks Chinese proposals.

They will take a hit on Pakistani projects in P o K and in turn India will prolly accept projects in Pakistan other than P o K.

Its not really possible... the chinese infra dev are so huge no banks are going to reject them all the time.
And as for as i know Chinese are having highest votes and shares in AIIB. It'll be easy for them to secure a loan than indian counter part.

Could be the indian pressure on other partners of WB which is holding the loan for the dev projects in Pakistani kashmir side but in AIIB chinese have a high ground... correct me if im wrong

Which is why I asked for the voting share. And what is required to defeat a proposal. Not every member is equal.

China would likely have the largest, but what about the rest.

Indian vote share is around 7.5 % while chinese are at 26%... with the chinese influence you can easily secure the loan