Rs52.5b contract signed for stage-I of Dasu power project

Chinese joint venture will start electro-mechanical works on the project

ISLAMABAD: Pakistan Water and Power Development Authority (Wapda) on Monday signed a contract worth Rs52.5 billion with the joint venture of GE Hydro China and Power China Zhongnan Engineering Corporation for starting electro-mechanical works on first stage of the Dasu hydroelectric power project.

The contract includes preparing the design, supply and installation of six Francis turbines, generators, main transformers, generator and station service switchgear along with related equipment.

Dasu Hydroelectric Power Project General Manager and Project Director Anwarul Haque and General Electric Deputy General Manager Aijun Xu signed the contract on behalf of their respective organisations.

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French ambassador, Chinese and US diplomats, Water Resources Secretary Muhammad Ashraf and Wapda Chairman Lieutenant General (Retired) Muzammil Hussain were present at the ceremony.

The Wapda chairman, in his welcome remarks, said, “Today is an important day for the Dasu hydroelectric power project. The project is of vital importance that will add a major quantum of hydel electricity to the national grid in order to minimise reliance on expensive thermal generation and bring down power tariff.”

Speaking at the ceremony, the water resources secretary emphasised that the water resources ministry was committed to optimal utilisation of hydel resources in order to generate low-cost and environment-friendly electricity to meet energy requirements of the country for economic stability and social development.

“The Dasu project is a manifestation of this commitment,” he said and praised the Wapda chairman for transforming the authority into a proactive and dynamic organisation.

“Wapda has been steadfastly moving to harness water and hydroelectric power resources in the country,” he remarked.

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The 4,320-megawatt Dasu power project is being constructed by Wapda on the Indus River upstream of Dasu town in Kohistan district of Khyber-Pakhtunkhwa. The project will be completed in two stages. Each stage will have generation capacity of 2,160MW.

At present, work on stage-I is under way while electricity generation by the project is expected to commence in 2024-25.

Stage-I will annually contribute more than 12 billion units of electricity to the national grid. It will also provide another 9 billion units to the system every year.

The World Bank is providing partial funds for the construction of stage-I of the Dasu project to the tune of $588.4 million with partial credit guarantee of $460 million. Remaining funds are being arranged by Wapda through its own resources and with sovereign guarantee from the government of Pakistan.

Published in The Express Tribune, November 26^th, 2019.

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