ISLAMABAD: As the boundary dispute between Gilgit-Baltistan and Khyber-Pakhtunkhwa threatens to derail the Diamer-Bhasha dam-building project, the Water and Power Development Authority (Wapda) has come up with a plan that would evenly split the royalties earned from the hydroelectric power generation at the dam between the two provinces.
Wapda officials hope that the new plan – which would set up six power generation units each in K-P and G-B – will avert the escalation of a dispute that has already seen the inauguration date of construction on the dam pushed back twice, first from May 24 to June 7 and now to October 18.
On Saturday, Gilgit-Baltistan Chief Minister Mehdi Shah said that his province “would not budge an inch” on the boundary dispute. Gilgit’s claims would advantage the newly-created province in claims over the royalties from power generation.
(Read: Shandur, Diamer-Bhasha Dam: G-B unrelenting on boundary dispute)
Wapda’s new plan modifies its old one that had decided to place more power generation units in Khyber-Pakhtunkhwa. The dam is expected to have an installed power generation capacity of 2,250 megawatts.
The boundary dispute, however, is not the only issue plaguing the $12 billion project. International lenders have not yet arranged for the funds necessary for the project, despite several of them agreeing in principle to financing the dam.
(Read: ADB considers options to finance Diamer-Bhasha Dam)
The Asian Development Bank, in particular, had pledged that it would even act as the government’s investment banker in raising the money from international capital markets. The United States government had also suggested that it would be open to providing funding for the dam. The problems facing the project have caused a delay of almost four years. Diamer-Bhasha was originally meant to be completed by 2017, but now will likely be finished in 2021. The dam is expected to generate approximately 19,208 gigawatt-hours of electricity, about 1,100 gigwatt-hours of which will be through an expansion at the Tarbela dam.
Meanwhile, residents of Kohistan district in Khyber-Pakhtunkhwa started protesting on Friday at what they perceive to be a low compensation rate that the government promised to pay them in exchange for moving from the dam’s proposed flood plain. Following the protests, Wapda agreed to increase the amount from Rs92 million to Rs262 million. A ministerial committee, constituted by Prime Minister Yousaf Raza Gilani, had already signed an out-of-court settlement with the approximately 28,650 people in 31 villages affected by the construction of the Diamer -Bhasha dam, offering Rs40 billion in compensation.
The committee, however, failed to resolve the boundary dispute and instead sent it to the Supreme Court, asking them to form a judicial commission to decide on the matter.
About 94 kilometres of the Karakoram Highway will also need to be rebuilt on higher ground after the dam is constructed.
Published in The Express Tribune, October 17th, 2011.
COMMENTS (18)
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Also, Kalabagh Dam and Diamer-Bhasha are not a zero-sum game. There's no either/or. Both dams will be built as both are necessary for Pakistan.
@ AJ Khan: Stop blaming Punjab for this dispute. It is between KP and GB. In my opinion, the royalties should be split between KP and GB evenly.
This dispute is being created by the KalaBagh dam supporters from Punjab. They want that this project should be shelved. Lt Gen Zulfiqar then Chairman Wapda, was the one who created this confusion as he wanted Kalabagh and not Basha. These people are not interested in Dam, Energy or Water, they are just interested in control of Water and
@Asmat Jamal: . I agree with you. Thats the spirit of one nation. GB and Pakhtunkhwa will share the interests and benifets. Long Live Pakistan. Punjab should also share the royalty of Ghazi Barotha power. Everyone knows that the then Chairman WAPDA took the headworks500 meters inside Punjab, just for the royalty. That was the cheap act of narrow-minded parochialism which paved way for blocking future projects.
International standards of catchment area, reservoir affected area and the dam itself should be applied to resolve this dispute judiciously.
I think that WAPDA has made a good decision in sharing royalties. GB will be most adversely affected by the dam and it is also an underdeveloped region compared to Khyber Pakhtunkhwa.
@Assad: it further suggests that there is a need to amend the constitution and develop a mechanism to benefit all those affected in one way or the other.
@Assad: thats why GB Government is asking to settle the boundary dispute..
it's 4500 MW appx as of today, not 2250.
@bangash: ????
Constitution is very clear, where the turbines are, that province is paid the royality. Basha dam from it's location is all in Khyber Pukhtoonkhwa, only the water clogging effect will spread to Gilgit and they are being paid/compensated for that. Some in the high ups just want to snatch as much as possible from K-P and they are making it an issue. Its only Basha dam as it is in the said location and not at all in Diamer, if someone would have visited it
As a resident of Pakhtunkhwa, I would suggest that the Royalty should be shared. Everyone who is affected should become a stakeholder. The concept of royalty based on headwork’s need to be changed and if the lake is falling in different province, it must be made partner in royalty. This will promote sense of collective benefits.
Constitution is very clear, where the turbines are, that province is paid the royality. Basha dam from it's location is all in Khyber Pukhtoonkhwa, only the water clogging effect will spread to Gilgit and they are being paid/compensated for that. Some in the high ups just want to snatch as much as possible from K-P and they are making it an issue. Its only Basha dam as it is in the said location and not at all in Diamer, if someone would have visited it.
well better not mess with GB
@bangash: its good for all that the boundary dispute is resolved......once for all ...instead of ripping KP or GB of its due rights........ No province must be denied its legal and moral right.
Hopefully, now PAK understands how IWT withstood the tests of time.
KP has been ripped off by federal govt for 35 years over Tarbela Dam, they need to stand their ground against GB which is not even a province.