US, Japan pledge assistance for Diamer Bhasha Dam

[A.Rafay]

ISLAMABAD:
In related developments, an official of the Economic Affairs Division (EAD) told a parliamentary panel here on Wednesday that Japan has agreed to provide machinery and equipment worth $4 billion for the Diamer Bhasha Dam. While addressing the panel, he also said that Japan had agreed to cooperate in extending the power generation capacity of the Mangla dam.
While briefing the Senate Standing Committee on Water and Power, the EAD official added that the US Agency for International Development had committed $200 million, and the Islamic Development Bank (IDB) had committed $100 million for the Diamer Bhasha project.
During the briefing, the EAD official ruled out the impression that the Asian Development Bank (ADB) had asked Pakistan to seek a No-Objection Certificate (NOC) from India in order to go ahead with the project.
Senator Zahid Khan, who was chairing the Standing Committee, expressed reservations during the meeting over delays in the implementation of the Diamer Bhasha and Dasu dams. “If there is a problem in obtaining funds for the Bhasha dam, the Water and Power Development Authority should expedite work on the Dasu hydropower project,” Khan said.
The parliamentary panel has also sought an explanation for the slow pace of work on the Dasu power project from concerned authorities. The committee once again instructed water and power officials to expedite work on the Dasu and Diamer Bhasha dams, and to take concrete steps for the timely completion of these projects.
The panel asked officials of the EAD and the Ministry of Water and Power to arrange a meeting with the Foreign Minister, in order to devise a mechanism for obtaining funds for hydel power projects from the Friends of Democratic Pakistan; for which the group had earlier pledged financing.
The committee expressed reservations over lower power production from the Malakand hydel power plant, and pointed out certain flaws in the project. Senator Hamayun Khan Mandokhel said that the project was producing only 23 megawatts (MW) of electricity, in spite of its 81MW generation capacity.
The panel directed the Water and Power Secretary to investigate the reasons behind low power production from different generation projects and fix responsibility on officials, in case they are involved in negligence.
The committee expressed concerns over the National Electric Power Regulatory Authority’s (Nepra) delayed determination of tariff for hydel power generation projects in the country. It asked the Nepra chairman to hold a meeting with the Private Power Infrastructure Board to devise a mechanism for immediate tariff determination and submit a report within 20 days, and to submit a report containing details of all tariff determination applications pending before the authority.

ISLAMABAD:
The United States has shown its willingness to partially finance the gigantic Diamer Bhasha Dam to ease water and power shortages in Pakistan and this comes at a time when multilateral donors have backed down on assurances of funds following Indian objections.
“Diamer Bhasha Dam needs massive financing and we can extend partial assistance for the project,” US Agency for International Development (USAID) Country Director Jock Conly told The Express Tribune on the sidelines of an agreement signing ceremony for financial assistance for the construction of Waran canal system here on Wednesday.
Conly said the ball was now in Pakistan’s court, which should decide how to deal with the US financing proposal.
Talking to the media after the ceremony, Water and Power Development Authority (Wapda) Acting Chairman Raghib Abbas Shah pointed out that the government was negotiating with different countries, including Russia and China, for financial support for Diamer Bhasha Dam.
“We are working on other proposals as well in case no country promises money for the dam. In this regard, imposition of a surcharge on power consumers is also being considered,” he said.
To cope with power shortage, he said, work on different hydropower projects including Neelum Jhelum was under way.
Speaking on Gomal Zam hydropower project, he said it would start producing electricity by December this year and the dam would begin irrigating agricultural land in March next year. The US has given $80 million for the dam with $12 million released recently.
Abbas also raised the issue of abduction of labour working on the Gomal Zam Dam. “Such incidents may slow the pace of construction work and the government should intervene to get kidnapped workers released.”
National Assembly Deputy Speaker Faisal Karim Kundi, who was also present on the occasion, said he had already taken up the matter with the interior minister and would also meet the president to seek swift measures for the safe release of workers.
Welcoming US assistance, Kundi pointed out that Waran canal system would bring prosperity in the local area and help irrigate barren land.
Earlier, Wapda Acting Chairman Raghib Abbas Shah and USAID Country Director Jock Conly signed the agreement for the canal system.
Addressing the signing ceremony, Conly said USAID would provide $12 million for construction of the 164km-long canal system to irrigate permanently 8,000 acres of land in Tank District of Khyber-Pakhtunkhwa. Waran Canal is part of a larger Gomal Zam irrigation project.
With the addition of Waran Canal, USAID will build a canal system to irrigate 191,000 acres of land that has mostly been barren. The canal system will enable local communities to work on their land, create jobs and improve income of people in the region.

New financiers: US, Japan pledge assistance for Diamer Bhasha Dam – The Express Tribune