Diamer-Bhasha dam cost surged by 300%

Ahsan laments dam's financing plan still incomplete

ISLAMABAD:

Federal Minister for Planning Ahsan Iqbal has said that due to the "inefficiency" of the previous PTI government, the cost of the Diamer-Bhasha Dam project has surged by over 300%, while the financing plan for this critical project remains incomplete.

"Due to funding shortages and delays, the cost of the project has escalated from Rs479 billion to Rs1,400 billion. We are suffering the consequences of the previous government's incompetence in every sector," Iqbal said on Friday while chairing a progress review meeting on the dam project.

The meeting was attended by the secretary for planning, the chairman of the Water and Power Development Authority (WAPDA), and senior officials from relevant institutions.

According to the minister, by 2018—when the PTI came into power—the estimated cost of the hydropower and water storage project was Rs479 billion, with Rs120 billion already spent on land acquisition.

He said the cost of the key project started escalating due to delays and unnecessary postponements, and in December 2020, the PTI government hastily commenced construction without securing financing.

"During the previous government's tenure, it was stated in standing committee meetings that the cost of the project had reached Rs600 billion, and on another occasion, it was said to be Rs750 billion.

"Even today, the estimated cost on paper is being shown as Rs480 billion, despite the fact that it has now risen to Rs1,400 billion. The responsibility for this exorbitant increase in the Diamer-Bhasha Dam's construction cost lies with the previous incompetent government," he stated.

The minister lamented that even today, the financing plan for the project is still incomplete.

"Even after six years, the revised PC-1 of the project has not been prepared. I had proposed in the standing committee during my previous tenure that work should not begin on any project whose PC-1 is more than two years old," he said.

He emphasized the need to separate the dam project from the power generation project. "Financing for the power generation project should be arranged from private institutions," he said, adding that the future lies in public-private partnerships.

"The construction of the Diamer-Bhasha Dam should involve Pakistani universities, engineering, and hydrology experts," he said.

The Diamer-Bhasha Dam is a vital infrastructure project aimed at enhancing Pakistan's water storage capacity, which is crucial for the country's water and food security.

Once completed, it will be one of the largest dams in the world, significantly increasing Pakistan's water reserves while generating up to 4,500 megawatts of electricity.

In addition to providing irrigation and flood control, the dam is expected to bring long-term economic and agricultural benefits to Pakistan.