WB has agreed to finance Diamer-Bhasha dam | Dar

[Edevelop]

ISLAMABAD: Finance Minister Ishaq Dar has claimed to have convinced the World Bank to finance the $14 billion Diamer-Bhasha dam.

The willingness of a previously reluctant multilateral agency — the World Bank — to be part of a major transaction in Pakistan apparently marked a significant development towards launching of Pakistan’s top priority strategic project to overcome increasing energy and water shortages.

The Asian Development Bank has also committed to become the lead finance manager for the project.

“We have also convinced the World Bank to finance the project,” the minister told journalists here on Tuesday. He said the government was able to convince the World Bank that it was not legally necessary to seek an NOC (no-objection certificate) from a neighbouring country to build a dam and that Pakistan’s first priority was Diamer-Bhasha dam after which it would consider Dasu Dam.

The World Bank has been reluctant to finance Diamer-Bhasha dam and had linked its willingness to an NOC from India — a condition unacceptable to Pakistan. The bank had, however, offered to provide financing for Dasu Dam to produce cheap hydropower.

Responding to a question, Mr Dar said the ADB was appreciative of the economic reforms initiated by the new government and had “agreed to actively engage with Pakistan” again after the adverse policies of the previous government that resulted in more flows to the ADB than into Pakistan.

“I have taken up the Diamer-Bhasha issue with the ADB and its visiting vice president was very positive and promised to work proactively with Pakistan” and become the lead finance manager for the project, he said.

The minister said since one institution alone could not provide so much funding Pakistan had decided to approach all international lenders.

An official statement quoted ADB vice president Xiaoyo Zhao as saying the Manila-based agency was on board and supportive of the construction of Diamer-Bhasha dam. “We have now moved ahead and (are) working to find a way to structure it (dam transaction) and we are already looking at various models in this regard,” said Mr Zhao during a meeting with Mr Dar.

He said the ADB appreciated the bold steps taken by the PML-N government for reviving the economy specially for successfully clearing the circular debt which was crucial for bringing in new investors and financing in the energy sector.

The statement also quoted Mr Zhao as having said that he was gratified to learn that the new government had zero tolerance for corruption and was committed to transparency which would reap rich dividends for Pakistan.

“The time has come to begin a new relationship with Pakistan and reverse the present trend of negative inflows,” the ADB vice president said. He promised to soon release $430 million for the income support programme.

Mr Zhao also said the Asian Bank was committed to Turkmenistan Afghanistan-Pakistan-India pipeline project which will encourage energy connectivity in the region.

Mr Dar informed the ADB vice president that 1,700MW were added to the national grid after clearance of the circular debt.


WB has agreed to finance Diamer-Bhasha dam: Dar - DAWN.COM

 

[Edevelop]

Progress report: Pakistan secures credit line for Diamer Bhasha Dam

ISLAMABAD:

Pakistan has made some headway in its efforts to arrange funds for the multi-billion-dollar Diamer Bhasha Dam as Finance Minister Ishaq Dar announced that the world’s two biggest multilateral lenders have agreed to finance the mega project, which has been facing delays for a decade.

Speaking to the media here on Tuesday, Dar said significant progress had been made in arranging funds for the multi-purpose Diamer Bhasha Dam, estimated to cost over $12 billion.

He said the Asian Development Bank (ADB) had agreed to become lead-manager of the project and the World Bank too came on board lately.

The World Bank (WB) has withdrawn its condition of seeking a no-objection certificate from India for releasing funds for the dam. “We have convinced the WB that it is not legally necessary to seek the NOC from a neighbouring country,” Dar said.

Earlier, the WB had refused to finance the dam on the grounds that it was planned to be constructed in a disputed territory, thus, an NOC was needed from New Delhi.

Pakistan will construct the dam in Gilgit-Baltistan aimed at generating 4,500 megawatts of electricity and storing water for irrigation. Both former military ruler General Pervez Musharraf and former prime minister Yousaf Raza Gilani laid the foundation stone for the dam, but without arranging funds.

ADB Vice President Xiaoyu Zhao also met with Dar here on Tuesday. In the meeting, the minister sought ADB’s assistance for the dam and Zhao promised to work with Pakistan.

Dar said only one institution could not provide over $12 billion, therefore, Pakistan would approach all international lenders. The ADB has agreed to become lead finance manager for the project.

“We have made it clear to the ADB that the country’s first priority is the Diamer Bhasha Dam and after that it will consider constructing the Dasu Dam,” he said.

The previous PPP government had abandoned the Diamer Bhasha project and opted for Dasu Dam, the minister claimed and said Dasu was run-of-river project while the country needed big reservoirs for water storage.

The government has assured the ADB that it will address its concern over the land acquisition policy while speeding up land acquisition for the dam.

Quoting Zhao, a statement issued by the finance ministry stated the ADB was supportive of Diamer Bhasha Dam. “We have now moved ahead and work to find a way to structure it and we are already looking at various models in this regard,” said Zhao.

According to Zhao, the ADB was appreciative of the bold steps taken by the present government for reviving the economy, especially the clearance of circular debt which was essential for attracting new investors and financing in the energy sector.

The ADB vice president said time had come to begin a new relationship with Pakistan and he wanted to reverse the present trend of negative inflows from the ADB.

He assured Dar that the bank would soon release $430 million for the income support programme as it shared Pakistan’s policy to support poor sections of the society. He said the ADB was committed to the Turkmenistan-Afghanistan-Pakistan-India gas pipeline, a project also facing delays.

Dar told Zhao, who was heading a delegation, Pakistan wanted to establish 10 coal-fired power plants in Gadani, Balochistan. The government has already acquired 1,800 acres of land and intends to acquire the remaining 3,200 acres shortly.

A jetty is also being constructed to facilitate import of coal for these plants. Furthermore, the ADB has been requested to fast track release of $900 million for converting 1,200MW power plants into ones based on coal.

Progress report: Pakistan secures credit line for Diamer Bhasha Dam – The Express Tribune

 

[Alfa-Fighter]

What happened, last time i heard china financing it, now china has stop financing and its WB and ADB .

 

[arushbhai]

What happened, last time i heard china financing it, now china has stop financing and its WB and ADB .

It all depends on who is running the government in Pakistan. If its PPP, than even pakistani investors take their investment else where. If its PMLN, even Indian investors bring their investment to Pakistan. World business community has always put a strong trust on PMLN when it comes to investment. Pakistan can get multiple investors to invest on a single project because the investors know the project is clean and corruption free

 

[Fracker]

so much money on this small dam. it's crazy.. 14 Billion $$ is one heck of amount. This is amount is good enough to build Kalabagh dam Plus Power Station in diamer. which means almost double power generation with much more water storage.

 

[Black Widow]

What happened, last time i heard china financing it, now china has stop financing and its WB and ADB .

China never gives anything free. Typical chinese investment...

They fund some project, They will put maximum chinese worker in that project. lol!

 

[Fracker]

China never gives anything free. Typical chinese investment...

They fund some project, They will put maximum chinese worker in that project. lol!

Chine never gives money, True. They only get involve and finish the Job themselves.. That's how they go.. This ensures less corruption as well support to the Pakistan and Project gets complete on time.

 

[AyanRay]

Chine never gives money, True. They only get involve and finish the Job themselves.. That's how they go.. This ensures less corruption as well support to the Pakistan and Project gets complete on time.

How does that ensure less corruption? How are you so sure that Chinese companies do no bribe pakistani officials to get the contract? And Chinese companies ensuries that no local people are employed, So its Pakistani money going to China and not the other way round.

 

[Fracker]

How does that ensure less corruption? How are you so sure that Chinese companies do no bribe pakistani officials to get the contract? And Chinese companies ensuries that no local people are employed, So its Pakistani money going to China and not the other way round.

No corruption in term of managing the project. And Pakistan don't pay to Chines employees (In most of the projects). Pakistan provide infra, resources to chines project owners, and ofcourse labours & what they will get for investing their own money, their own resources, and in the end handing over the projects to Pakistani Officials.

Only an strategical partner, and peaceful N-Neighbor

 

[SHAMK9]

 

[TheFlyingPretzel]

so much money on this small dam. it's crazy.. 14 Billion $$ is one heck of amount. This is amount is good enough to build Kalabagh dam Plus Power Station in diamer. which means almost double power generation with much more water storage.

Bro, at a proposed output of 4,500 MW it'll generate more electricity than Kalabagh and Neelum-Jhelum put together. It is anything but small.

 

[anilindia]

The question whether or not Finance Min-ister Senator Ishaq Dar will be able to convince the World Bank to fund 4500MW Diamer-Bhasha Dam without a no-objection certificate (NOC) from India is currently under discussion in different Ministries including the Water and Power Ministry.

Islamabad-based World Bank officials, senior officials of the Water and Power Ministry and Wapda remained tight lipped when asked if Dar's recent claim that he would successfully persuade the World Bank to finance the $14 billion Diamer-Bhasha Dam without first getting an NOC from India. Wapda officials told this correspondent that the World Bank had been delaying the project for the past 11 years and had instead offered funding for run of the river 4,320MW Dasu hydropower project.

The World Bank as well as other multilaterals cannot approve funding for any project that is in disputed territory and it is for this reason that projects in both Occupied Kashmir as well as Azad Jammu Kashmir have not qualified for support. "Pakistani officialdom has failed to grasp the fact that multilaterals such as Asian Development Bank (ADB) and the World Bank will not support the construction of the 4,500-megawatt Diamer-Bhasha dam in what is considered a disputed territory unless both countries party to the dispute approve the project," commented a power sector analysts.

Dar's claim therefore that he would succeed in convincing the World Bank that it was not legally necessary to seek an NoC from India to build Diamer-Bhasha Dam "maybe wishful thinking," they add. Official documents available with Business Recorder reveal that USAID has indicated its willingness to extend $1 billion for the project, of which $200 million will be for a feasibility study. The US ambassador to Pakistan has also indicated that his country is in contact with senior World Bank authorities with regard to support for the Diamer-Basha Dam.

"If donors and ADB do not support immediate initiation of the Diamer-Bhasha Dam project by announcing a time-bound financing plan and construction schedule, GoP may adopt an alternate plan to construct the dam. Bulk of the financing for the civil works and the E&M equipment would be sought from export credit banks and supplier's credit from foreign companies that win the contracts. The response is likely to be encouraging as preliminary discussions have already taken place," the sources said.

Diamer-Bhasha Dam: will Dar be able to convince World Bank? | Business Recorder

 

[Fracker]

Bro, at a proposed output of 4,500 MW it'll generate more electricity than Kalabagh and Neelum-Jhelum put together. It is anything but small.

It's a small dam but bigger power generator due to higher flow of indus river in those area, that's the fact, location speaks about Water reservoir will be small as compare to Kalabagh, Also, Bhasha will on same indus river, so water will not be available much for Terbella, The proposed output for Kalabagh was 3.9 GW, and Only Power station at diamer can generate more then 3 GW (I need to check exact figures in Wapda's feasibility report, but that's what I remember), which will be higher than bhasha dam alone. Also, no canals can be build while Kalabagh can give lots of canals, which means more agriculture Land. Also, the flood protection against River Swat and Kabul rivers will not be there.

If you visit both location then you will understand What I am talking about.

 

[ziaulislam]

It's a small dam but bigger power generator due to higher flow of indus river in those area, that's the fact, location speaks about Water reservoir will be small as compare to Kalabagh, Also, Bhasha will on same indus river, so water will not be available much for Terbella, The proposed output for Kalabagh was 3.9 GW, and Only Power station at diamer can generate more then 3 GW (I need to check exact figures in Wapda's feasibility report, but that's what I remember), which will be higher than bhasha dam alone. Also, no canals can be build while Kalabagh can give lots of canals, which means more agriculture Land. Also, the flood protection against River Swat and Kabul rivers will not be there.

If you visit both location then you will understand What I am talking about.

actually you are wrong
Kalabagh dam will produce around 16000gwh/yr where as diamer bhasha 19500gw/yr

also another 3800gwhr/yr billion units of electrcity will be added to tarbela dam too.
given that tarbela dam will see a massive extension of 1400mw to total of 4900mw. it will be crucial and may add,
besides this energy at ghazi brotha, chashma will also significantly increase
tarbela life will be increased and floods controlled

however the advantage kalabgh has is time, money and storage on river kabul...
kalabagh can be built in half expensive half time with irrigation canals to surrounding areas

also if munda dam is made it will not only protect punjab also KPK unlike kalabagh

P.S
i am in favour of kalabagh dam but we should not discard bhasha dam

 

[Hyde]

Don't start Kalabagh vs Diamer debate in this thread. You can create another one for such purpose

As far as I remember, if correctly...

Its 3600mw vs 4500mw
Its 6 billion USD vs 14 billion USD
Its about 6 million acre feet of water vs 8 million acre feet of water storage
It's displacement of 28,000 people vs 1 lakh people
One is a dream vs May be a reality

But the fact is, we need both dams and more dams to secure the future of water in Pakistan and both dams comes with distinguished features/advantages so it is not right to compare Apple and oranges.

Now lets get back to Diamer-Bhasha dam only