Look here:
https://www.bloomberg.com/markets/rates-bonds
The global bond market is low because of low inflation and interest rates.
US 10-year Treasury interest rate is 1.1% US Treasury are also considered a global benchmark.
So yes, 7% is generous, but only if things remain the same. But looks like inflation is on the horizon, and with it rising interest rates.
Better for WAPDA to sell the bonds now at this rate before rising interest rates reduce its appeal.
I agree..WAPDA should simultaneously start bhasha and
Better to talk in billion units
The total cascade of already feasibility studies done is in excess of 300 billion units 3x our current capacity
All we needed was to use AB WB AIIB IDF and WAPDA bonds and some PSDP.
we could have done half of these projects giving huge employment opputunities and free power
We instead went for expenisve IPPs with return of 20-25%?!
Now that govt is out of crisis(still not completely as we are under IMF)
it should get maximum amount of bonds for cheap hydro power and get those completed rapidly
Due to our boom burst mentality we lost 10-12 years so these dams would take time
Once we are out of IMF we will have more flexibility to offer bonds and build bunji -thakot -pathan- bhasha-dasu..these are ready to start projects with
24b+12+20+21+21 billion =100billion units
(Total pakistani demand 120b units)
With mix of bonds and PSDP you can put the cost at 5cents instead of BOT model where it is at 8-9cents
Koi aur humein ghaans nahi dalta... $25-30b kaun deh ga jinsay yeh dams bunien gaye?
Look you dont need foreign component for local work
A dam has only 30-40% foreign component
So 12b$ bhasha dam just really needs 4b$
Rest you can gather from local banks, some supplier credit and some PSDP
Just like in dasu..we got 700m from WB and rest as above
Using this model you can easily start 3-4 dams togethr
The foreign component is difficult but is doable with bonds provided u r not under IMF and foreign sector crisis
