Diamer-Bhasha dam gets excluded from CPEC: Can Pakistan build it on its own?

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Diamer-Bhasha dam gets excluded from CPEC

Five ground-breaking ceremonies for Diamer-Bhasha Dam has been carried out in last fifteen years

By News Desk -
November 15, 2017
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ISLAMABAD: China’s demand of ownership rights and other strict conditions for Diamer-Bhasha dam has forced Pakistan to exclude this project from China-Pakistan Economic Corridor (CPEC).

This was stated by Water and Power Development Authority (WAPDA) Chairman Muzammil Hussain on Tuesday, reported a local newspaper. Hussain said Chinese conditions for financing Diamer-Bhasha dam weren’t workable and stood against the country’s interests.

He shared that Chinese conditions included taking ownership of project, operation and maintenance cost and securitization of Diamer-Bhasha project by promising another operational dam.

Considering these conditions as unacceptable, Prime Minister Shahid Khaqan Abbasi moved a summary saying that Pakistan would finance Diamer-Bhasha dam from its own resources.

This issue of removing the project from CPEC was also brought up during Cabinet Committee on CPEC which met last week.

PM Abbasi was apprised by Wapda Chairman and water resources secretary that the only solution to this problem was to fund this delayed project from its own resources.

This development comes merely days before the seventh JCC meeting scheduled to be held on November 21st in Islamabad. Around 15 prioritized energy projects valued at $22.4b and possessing 11,110MW generation capacity come under CPEC and majority of them are based on coal. Only two projects of 1,590MW capacity are hydel-based.

Pakistan has faced challenges in raising funding from international finance institutions due to fierce Indian opposition. There was optimism that Diamer-Bhasha project’s inclusion into CPEC would have finally resulted in its completion.

Five ground-breaking ceremonies for Diamer-Bhasha Dam have been carried out in last fifteen years. Asian Development Bank (ADB), World Bank and China have refused to finance the project, said Water Resources Secretary Shumail Khawaja.

Wapda Chairman alleged ADB for having destroyed the project and then refused to finance it besides holding it responsible for the delays. He said the project would cost Rs14b and PM Abbasi had agreed to break the scheme into dam storage and power generation.

As per new financing plan; federal government would give Rs30b per annum over a period of nine years from Public Sector Development Programme (PSDP). Hussain shared WAPDA would provide 20pc equity from its own resources, whereas funding for setting-up of power plants would come from commercial sources.

Work on Diamer-Bhasha dam will begin in 2018 and it would take nine years for the project to be completed and power generation site construction will begin 2.5 years after its initiation.

 

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Q. Can Pakistan. Build this on its own as envisioned in 9 years or would this become another white elephant?

 

[AZADPAKISTAN2009]

- shocked -

something does not adds up
I think last year or so some power plant which were being setup were reduced from 4-8 units to 1-2 and removing the Bhasha Dam , is big item

Considering ... we know Government will change next year

9 Years to construct a Dam? Nine years ? that figure is rediculous

PML(n) just looking to eat up funds so does not likes to give up control of projects

The decision appears some sort of a retalition move by PML since Nawaz sharif's assets were seized few days back, and same with Financial Minister dr's assets were seized

Military need to step in and check what is PML up to with messing up project financing

 

[ziaulislam]

- shocked -

something does not adds up
I think last year or so some power plant which were being setup were reduced from 4-8 units to 1-2 and removing the Bhasha Dam , is big item

Considering ... we know Government will change next year

9 Years to construct a Dam? Nine years ? that figure is rediculous

PML(n) just looking to eat up funds so does not likes to give up control of projects

The decision appears some sort of a retalition move by PML since Nawaz sharif's assets were seized few days back, and same with Financial Minister dr's assets were seized

why shocked, i told this in 2013 that PMLN is going to do ground breaking every year till the election for face saving
dams dont get you votes metros do

 

[AZADPAKISTAN2009]

Just burning up federal budget , for future by commiting funds for future budgets before they leave office so next government that will come will not have any budget left for their own initiatives

Looks like a Sabotage attempt by PML -N , at least to me looks like it , to blow up confirmed financing and then commit Pakistan's own finances into it

This project will have drastic consequences on Pakistan's need for water if delayed

 

[Clutch]

- shocked -

something does not adds up
I think last year or so some power plant which were being setup were reduced from 4-8 units to 1-2 and removing the Bhasha Dam , is big item

Considering ... we know Government will change next year

9 Years to construct a Dam? Nine years ? that figure is rediculous

PML(n) just looking to eat up funds so does not likes to give up control of projects

The decision appears some sort of a retalition move by PML since Nawaz sharif's assets were seized few days back, and same with Financial Minister dr's assets were seized

Military need to step in and check what is PML up to with messing up project financing

I agree... bhasha dam is critical for Pakistan's water security and clean energy needs. Someone is playing politics with Pakistan's future... but what else is new... crooks!

 

[ziaulislam]

builidng dam is easy
bhasha dam if build from equity will cost 9 billion from loans will cost 13 billion
govt should first only build the reserviour, once built it should than float interntional tenders for adding turbines
this will swell up th cost but will make it doable. as reserviour will only cost 4 billion dollars and will increase electricity production down stream in dasu, tarbela , ghazi by 25%

 

[RealNapster]

Ab bolo na sab Cpec ye Cpec wo. Bhai end me bat business ki he ajati hy. They know no one agreed to finance this project neither the pakistani Govt have will to finance this project from its sources (30 b /year for 9 years make it 270 b i.e; 2.6 b dollars. Is this a joke ? Dam estimated cost is 14 b dollars. Not 2.6 b dollars). So, parh gya 'bary bhai' ka wazni haath kandho pe or aa gae apky bhai ki sakht awaz.

I am in favor if cpec. Infact, i think its the final chance for us to catch the bus to prosper Pakistan through Industrialization and good infrastructure. But ye har baat me cpec ye cpec wo, acha kuch log to kehty hy chinese naval base banwa do gwadar me. China ko chaahye 4-6 frigates gift kardy Pakistan ko port security kay lye. O bhai ! Lanat hay.

Pashto me aik proverb hay "Ghareeb Allah ne banaya, begerat kis ne bana dia ???

builidng dam is easy
bhasha dam if build from equity will cost 9 billion from loans will cost 13 billion
govt should first only build the reserviour, once built it should than float interntional tenders for adding turbines
this will swell up th cost but will make it doable. as reserviour will only cost 4 billion dollars and will increase electricity production down stream in dasu, tarbela , ghazi by 25%

Exactly. We can live without electricity but water.
But again even the proposed amount of 30b/year till 9 years ? We can not built the reservoir with 2.6 b dollars. It should be atleast 50 b per year.

 

[Alpha77]

In one sense bad news, BD is necessary to reduce per unit price of electricity... but if Govt is serious for its construction from own pocket it ll be a positive side.

 

[Sucha Kuggu]

Pakistan has faced challenges in raising funding from international finance institutions due to fierce Indian opposition. There was optimism that Diamer-Bhasha project’s inclusion into CPEC would have finally resulted in its completion.

Five ground-breaking ceremonies for Diamer-Bhasha Dam have been carried out in last fifteen years. Asian Development Bank (ADB), World Bank and China have refused to finance the project, said Water Resources Secretary Shumail Khawaja.

If UN do justice in INDIA's VIOLATION OF INDUS WATER TREATY AND RESULTING CONSEQUENCES FACED BY PAKISTAN, INDIA SHOULD BE MADE TO PAY FOR THE CONSTRUCTION OF DIAMER-BHASHA DAM.

 

[AZADPAKISTAN2009]

Just a political game , keeping door open for stealing from budget for the project intentionally kept to 9 year to steal and live off the funding don't want to give control to third party as funding / money won't be allocated

What was the problem in giving engineering access to the asset to Chinese firm

We care about the water saved , let someone else take share in electricity profits

Water Saved -> Pakistan
Water drinkable -> Pakistan
Agricultural gain -> Pakistan
Electricity profit > 60-40 (Pakistan/China)

What exactly is the deal with this arrangement ?

 

[countryman]

He shared that Chinese conditions included taking ownership of project, operation and maintenance cost and securitization of Diamer-Bhasha project by promising another operational dam.

Very wise decision - at least we're guarding our national interest to some extent. Pakistan should focus on CPEC not more debt. Debt is sweet poison - we should know that.

What exactly is the deal with this arrangement ?

Like they say there is such thing as free lunch - luckily situations made it even clear. We're worst deal makers - we know that, so, the government should have been transparent. It could end up worse if we continue to take more debt in the name of cooperation.

 

[Syed1.]

China ne paisa khilanay se inkaar kardiya hoga LNG Abbasi ko. These Noon dogs will run Pakistan into the ground. Nazi style execution should be carried out against each one of them.

 

[RealNapster]

China ne paisa khilanay se inkaar kardiya hoga LNG Abbasi ko. These Noon dogs will run Pakistan into the ground. Nazi style execution should be carried out against each one of them.

This inclusion is a wise decision when you see what chinese were asking for.

 

[Ryuzaki]

First Chinese stopped work on transmission line,now exclude dam from CPEC.....something's cooking