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US considers funding Pakistani dam project, angering India

Dance

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ISLAMABAD -- Even as U.S.-Pakistani cooperation on anti-terrorism programs is withering, the United States is considering backing the construction of a giant, $12 billion dam in Pakistan that would be the largest civilian aid project the U.S. has undertaken here in decades.
Supporters of a U.S. role in the project say American participation would mend the United States' tattered image, going a long way toward quieting widespread anti-Americanism amid criticism that the U.S. lavishes money on Pakistan's military while doing little for the country's civilian population.

Approval of the project still faces many hurdles. India objects to the dam because it would be in Kashmir, an area that India also claims. The project also is likely to face opposition from Pakistan's critics in the U.S. Congress, who've called for all aid to be cut off after Osama bin Laden was found hiding in northern Pakistan earlier this year. Recent Pakistani actions, including allegations this week that Pakistan had allowed Chinese military experts to inspect the wreckage of an American stealth helicopter that crashed in the bin Laden compound, are likely to inflame such criticism.

Still, proponents of U.S. aid for the project recall that the United States was popular in Pakistan in the 1960s and '70s, when Washington backed the construction of two enormous dams, Tarbela and Mangla.

"Getting involved in a long-term project like this is very compelling for us," said a senior U.S. official who asked not to be identified because no final decision on the project has been made. "This would be a huge demonstration of our commitment to Pakistan and our faith in the country's future."

The Diamer Basha dam would provide enough power to overcome Pakistan's crippling electricity shortage. Proponents of the project also claim that its water storage capacity, in a 50-mile-long lake that would be created behind the dam, would be so great that it would have averted last's years devastating floods, which deluged a fifth of the country, pushed 20 million people out of their homes and caused an estimated $10 billion in damage.

The U.S.-Pakistani alliance since 2001 has been plagued by accusations in Washington that Islamabad is playing a "double game" by secretly supporting Afghan insurgents, while Pakistan thinks it's been bullied into acting against its own interests and that it's been unfairly blamed for American failures in Afghanistan. The unilateral American raid that killed bin Laden in May humiliated Pakistan's powerful military, causing anti-terrorism cooperation to be all but halted.

Diamer Basha also could bolster the credentials of the civilian side of Pakistan's government, which traditionally is locked in a struggle with the military over who will dictate policy. The last two military-run governments didn't manage to build a large dam, leaving the country with a shortage of electricity that forces daily blackouts, known as "load shedding," that last for as long as 12 hours. The blackouts disrupt industry, throwing thousands out of work and creating misery in ordinary households.

Diamer Basha, to be located on the Indus River, would provide 4,500 megawatts of power, roughly the country's current shortfall, though it would take some eight years to build.

Shakil Durrani, the chairman of Pakistan's Water and Power Development Authority, said the dam had received Pakistani government approval and that he was confident of American support for the project, after talks with U.S. officials. The authority plans to develop a shortlist of contractors for the massive construction project at the end of this year.


"If we had a reservoir the size of Diamer Basha, the floods last summer would not have occurred," Durrani said. "This would be the largest project ever undertaken in Pakistan. It is our top priority."
The U.S. would provide only a fraction of the $12 billion needed to complete the project. However, the American money would be crucial in enabling other international finance sources to support the dam, especially the Asian Development Bank.

The U.S. official indicated that some $200 million would be provided initially, with the possibility of hundreds of millions more as the project develops.

"We want to see the Diamer Basha project launched. We believe that putting down some money at the beginning will act as a catalyst, accelerate the process," the official said.

U.S. aid to Pakistan, ramped up to $1.5 billion a year under the Obama administration, has been widely dismissed in the country as going mostly to consultants and lacking direction. It remains unclear how much of the money has arrived in Pakistan since the new aid program began in 2009.

The U.S. official said Washington had spent $2 billion on civilian assistance in Pakistan since October 2009, including $550 million on flood relief last year, but Pakistani officials and analysts say the amount is much less.

"The vast majority of the U.S. aid has gone to the Pakistan military, not schools or social services," said Mosharraf Zaidi, an analyst. "Diamer Basha would be tremendously good for Pakistan and would show that the U.S. is invested in a long-term relationship with Pakistan, no matter how bad things look today."

Since 2001, Washington has provided $20.7 billion to Pakistan, according to a recent report from the Congressional Research Service. Of that, $6.5 billion was economic aid, including budget support, an assistance program for the extremism-plagued tribal area and help for internally displaced people. However, it's included no landmark infrastructure projects.

"U.S. aid is neither visible nor tangible, as far as the people of Pakistan are concerned, unlike, say, aid from China or Saudi Arabia," said Tariq Fatemi, a former Pakistani ambassador to Washington. "Most Pakistanis want the U.S. to focus on sectors that really matter, namely energy and power."

In contrast, Chinese economic aid in recent years has included nuclear power plants and the construction of a large deepwater port at Gwadar in the country's southwest. The Saudis are constantly pumping money into mosques and religious seminaries in Pakistan and they periodically provide cut-price oil.

The Indian Embassy in Islamabad declined to comment directly but it pointed to a statement that the government of India issued in 2006, after the Diamer Basha project was first proposed. That statement said India had officially protested to Pakistan, as the dam would be "in territory that is part of the State of Jammu & Kashmir, which is an integral part of India by virtue of its accession to it in 1947."

US considers funding Pakistani dam project, angering India - World Wires - MiamiHerald.com
 
Wasn't Diamer Bhasha sipposed to be built even without US funding?
 
americans will not only build the dam but also spy...it is leaving from afghanistan but it wants its presence in the region in one way or another...so it will be sending spy's and mercenaries in the form of engineers and construction workers...then they will make head office in islamabad for covert operations driving all the way to construction site that is in kashmir...taking photos of strategic installations in kashmir and fowarding them to india..so in the end it is a well laid plot...i think we should take $12 billion in cash and then ask Chinese to build the dam....

Since China is also nearby we should be extra vigilant....we all know americans and indians want to sabotage Pak China friendship
 
Hey can anyone tell me how serious the dispute is b/w India and Pakistan over the issue of bhasha dam?
 
CHINA HAS TREMENDOUS CAPABILITY IN BUILDING DAMS AND BESIDES CHINA HAS BEEN A MUCH MORE RELIABLE PARTNER IN LAST 60 YEARS THAN USA. PAKISTAN SHOULD MOVE FORWARD IN BUILDING THESE MUCH NEEDED DAMS WITH CHINA'S HELP. LET OUR CHINESE FRIENDS MAKE SOME MONEY ON THESE PROJECTS AND THEIR RATES ARE MUCH LESS THAN USA.
:pakistan::china::pakistan::china::pakistan::china::pakistan::china:
 
india doesnt need to worry as its not gona happen.
when i was a child and zia was on the throne i read in news paper that pakistan is about to receive AWACS from USA...(i didnt know what it was but my dad told me its a radar that flies in the air).......now i am a dad and the snail mail of US awacs still not arrived.....something similar happened every american gratitude tiwards Pakistan....F 16s arrived 20 years later and that too with so many strings attached that they are next to useless.....the list goes on.
from our decades of post USSR experience we know that whatever USA says is a joke.and a bad joke...
 
india doesnt need to worry as its not gona happen.
when i was a child and zia was on the throne i read in news paper that pakistan is about to receive AWACS from USA...(i didnt know what it was but my dad told me its a radar that flies in the air).......now i am a dad and the snail mail of US awacs still not arrived.....something similar happened every american gratitude tiwards Pakistan....F 16s arrived 20 years later and that too with so many strings attached that they are next to useless.....the list goes on.

It is going to get worse as it seems the Republicans might come in power. Besides, $12 billion is a very big amount, and with time, the financial cost might swell considerably. Anyway, the US is pledging less than $1 billion, or so it seems from the article.

About India, its gonna say US funding to Pakistan for a dam in Kashmir might signal the US's recognition of Kashmir as integral part of Pakistan. That may not go easy with the India's lobbyists sitting in D.C.
 
reminds me of the Chinese objections to development projects in Arunachal pradesh on the grounds of it being a disputed territory. I also remember pakistani members being in full support of the Chinese stand. So I guess now they will fully understand and support Indian stand if GOI decides to oppose the AJK project

My personal opinion; any project that helps pakistani civilians should be wholeheartedly supported by GOI.
 
India should stop buying USA weapons if USA will fund this dam in kashmir.
 
So I guess now they will fully understand and support Indian stand if GOI decides to oppose the AJK project

LOL. China never claimed to be objective regarding India and Pakistan. We are allies with Pakistan, while India is our geostrategic rival.

Why would you even assume, that China would try to be neutral in any dispute between India and Pakistan? Stapled visas for instance, were only applied to those from Indian-administered Kashmir, not from Pakistan-administered Kashmir.
 
LOL. China never claimed to be objective regarding India and Pakistan. We are allies with Pakistan, while India is our geostrategic rival.

Why would you even assume, that China would try to be neutral in any dispute between India and Pakistan? Stapled visas for instance, were only applied to those from Indian-administered Kashmir, not from Pakistan-administered Kashmir.

Exact same reason, why India should move away from NAM to join USA to be aggessive back to China.
 
LOL. China never claimed to be objective regarding India and Pakistan. We are allies with Pakistan, while India is our geostrategic rival.

Why would you even assume, that China would try to be neutral in any dispute between India and Pakistan? Stapled visas for instance, were only applied to those from Indian-administered Kashmir, not from Pakistan-administered Kashmir.

CD I'm not assuming china will be neutral. I'm simply providing some background info to pakistani members in case GOI decides to oppose it.
Anyway lets not make a mountain out of a mole hill, like PK members have said, the chances of this project are quite low.
 
Exact same reason, why India should move away from NAM to join USA to be aggessive back to China.

Absolutely. :azn: Give up your much vaunted "independent" foreign policy, and join someone else's camp. Instead of trying to be one of the "poles" in a multipolar world, you guys would be much better off in joining one of the existing poles.

All for the low low price of one staple. :P That's what you call value for money.
 
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