Donors back out: Govt may award Diamer-Bhasha Dam contract to China
The government may utilise an option of direct award of contract for the $12 billion Diamer-Bhasha Dam with power generation capacity of 4,500 megawatts and select China for the purpose as multilateral donors have backed out and linked the project with a no-objection certificate from India.
In a meeting held at the Ministry of Water and Power and chaired by Water and Power Minister Ahmed Mukhtar on Monday, participants said international donors had refused to provide funds for Diamer-Bhasha Dam due to Indian objections over its construction.
The Water and Power Development Authority (Wapda) was asked to submit a report with all options and commitment from the donors to finance the project. The report will be discussed after taking the views of the Economic Affairs Division and Planning Commission in the next meeting to be held in a couple of days.
“Besides China, Russia is also ready to finance the dam in case the contract is awarded without bidding,” a senior official of the Ministry of Water and Power said.
China and Russia have also offered the same proposal for the Iran-Pakistan (IP) gas pipeline project.
Sources told The Express Tribune that the government had also decided to seek assistance from the Friends of Democratic Pakistan (FODP) – a group comprising friendly and donor countries which was formed to support social and economic development in Pakistan.
This comes following refusal of the World Bank, Asian Development Bank (ADB) and other multilateral donors to provide funds for the dam in the wake of fears expressed by India over the environmental impact of the dam’s construction.
When approached for comments, the Wapda chairman did not respond to the call.
Pakistan has been negotiating with China, ADB, World Bank and Islamic Development Bank (IDB) for financial assistance for the dam. However, the donors have shifted focus and are now offering funds for the 4,320-megawatt Dasu hydropower project.
The Dasu project is situated seven kilometers (km) upstream of Dasu village on the Indus River, 74 km downstream of Diamer-Bhasha Dam and 350 km from Islamabad. The project is located in Kohistan District of Khyber-Pakhtunkhwa.
In the meeting, Water and Power Minister Ahmed Mukhtar said the government was determined to construct mega water and power projects and all financing options were being considered to complete them within shortest possible time.
He said the execution of mega water projects, aimed at enhancing water supply and producing cheaper electricity, was the top priority of the government.
Earlier, Wapda Chairman Shakil Durrani briefed the meeting on the current status of Diamer-Bhasha project, its benefits, land acquisition, infrastructure development, compensation package for the displaced, allocation by the government and other related issues.
Published in The Express Tribune, August 14th, 2012.
COMMENTS (29)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
1734780406-0/Untitled-(11)1734780406-0-165x106.webp "article")
1734778885-0/Untitled-(10)1734778885-0-165x106.webp "article")
1734776708-0/Untitled-(8)1734776708-0-165x106.webp "article")
1734773637-0/Untitled-(7)1734773637-0-165x106.webp "article")
1734587529-0/Express-Tribune-(1)1734587529-0-270x192.webp "pakistan to host another icc event")
@khalsa: Overseas Pakistanis Have Got Bank Accounts Worth $250-300 Billion.Pakistan's Has Got A Tax Potential Of At Least 8000 Billion Rupees.Yes $12 Billion Are Peanuts.Tax Collection and Attracting Overseas Pakistanis To Invest In Pakistan Are Cornerstones Of Imran Khan's Policy.Yes Under IK We Can Do It
While making illegal dams upstream in disputed occupied Kashmir on Pakistani rivers as per Indus water treaty, India see no harm but a downstream dam in Pakistan side that will not even cause any restriction on flow what so ever, India so concerned! Amazing, I guess world bank is not the only forum India play against Pakistani interests. Pakistan must built even more dams where it can and from any resources it can get!
Once Imran Khan is in power, all you will need to do is wave your green passports in the air for it to start raining. Then you won't depend on the water flowing from India.
“The government may utilise an option of direct award of contract for the $12 billion Diamer-Bhasha Dam with power generation capacity of 4,500 megawatts and select China….”
Thank god, please do this now. But politician may not agree to this as there may not be any kickbacks, and project will be completed on time and on budget?
Shocking, how can Pakistani allow this?
@FZ: 12 billion are nto peanut but whole pakistan is peanut in front of 12 billion dollars. a nation that deal his sovereignty for few billion dont have anything to talk about
@just_someone: money something pakistan is now just dreaming of. moreover the technical expertise with pakistan is next to nil
@FZ: Imran Khan is yet to pay any income tax for all the years before he joined politics. Given that he was so happy and willing to stiff the Pakistan government all these years, what makes us think that he will be any different after he comes to power? Perhaps the Pakistani government funds will also be invested in Dubai's real estate market for Imran's personal gain - if he can do that with funds for hospital named after his mother, what hope do we have for government funds?
@fahad: What about Aksai Chin?
Indian strategy is to make Indus water treaty irrelevant by constructing all these dams. Indians are busy lobbying at international forums about the water shortage and need for more dams. May be it is time to snap out of this wishful thinking about India being our friend.
Let Imran Khan come to full power and we do not need China as well we will make it happen ourselves inshAllah, 12 billion dollars are peanats for Pakistani.
Let this unfaithful person, dishonest man be removed, we will move up in everything very quickly with Imran Khan in power.
india will always oppose something that is beneficial for pakistan. we should take that in account. as china is ready to help us , we should not waste any time. first basha dam, then skardu and then kalabag dam should be made. it will free us from energy crisis and with enough man power we can be an economic super power.
who gives pak the right to construct a dam in a disputed territory? No international law has recognized PoK and therefore, this is abject violation of treaty and trust by Pak. But again, what more can be expected.
The issue is not that its a voilation of the indus watwr treaty but rather the fact that this dam isbeing built in a disputed territory without taking into confidence the citizens of the area. Pakistan does not the mandate to take this decision on behalf of the people of gilgit
@fahad: Come and take it. Indian armed forces are there to give you a nice one.
@fahad: ha ha ha ...If Chinese and you guys have the guts, then try making this. Challenge for sweeter than honey friendship" text dear
@Ali: “Pakistan and India ll start a war in 2025 on water issues, the history will write this an initiating point of Indian lobby through US donors to stop the construction of the dam”.
That is, if Pakistan is still around in its present form, in 2025 !
@anil: you must get out of kashmir. its all ours.
@Vikas: try telling this to China.
Why not go for Kalabagh Dam which will cost less and will be ready much earlier than Bhasha Dam.
Look who's talking. India is busy building dams on all rivers flowing into Pakistan from Indian occupied Kashmir to regain control of water of western rivers in violation of Indus Water Treaty.
This is being done under well thought-out strategy to render Pakistan’s link-canal system redundant, destroy agriculture of Pakistan which is its mainstay, and turn Pakistan into a desert. India has plans to construct 62 dams/hydro-electric units on Rivers Chenab and Jhelum; thus enabling it to render these rivers dry by 2014. Now here India don't see any fears over the environmental impact of the constructions of these dams.
Last year, Pakistan Muttahida Kisan Mahaz (MKM) has criticised the government’s silence over Chenab River water ‘piracy’ by India. The Mahaz president said: “Under the Indus Water Basin Treaty, India is required to release 16,000 cusec Chenab water to Pakistan whereas water flow at Head Marala has been reduced to only 5,000 cusec as a result of construction of Baglihar Dam Occupied Kashmir.
So I must emphasis the donors should see these facts, figures and malintentions of India. Pakistan has to build its dams what so ever and we must not hesitate to involve China or Russia to help us in this regard.
@Ali You are far better than ur another strategist Mr.Zaid.
It was obvious , because it was a disputed area . No need to be surprised.
Russia & China are ok to do this project provided quote:
Besides China, Russia is also ready to finance the dam in case the contract is awarded without bidding,” a senior official of the Ministry of Water and Power said.
This opens the door to fix costs, margins & percentages at will.
@PAK TEAM: "REMEMBER INDIA IS OUR FOE NOT A FRIEND" +++++++++++++++++++++++++++++++++++++++++++++++++++++ And Vice Versa
REMEMBER INDIA IS OUR FOE NOT A FRIEND
So now again someone will inaugurate this dam.
It's good I m happy India is showing its dirty face, lesson for PPP
Write my words "Pakistan and India ll start a war in 2025 on water issues, the history will write this an initiating point of Indian lobby through US donors to stop the construction of the dam". I ve seen several thesis on this how Indian and Pakistani lands are facing drought and growing frustration which ll lead to war
The war ll start in Pubjab, as India will use Sikhs to go against Pakistan. India will gather forces to attack the dam through air strikes and Pakistan ll launch the multiple missiles......full war, severe floods due to attack on dams in both Punjabs (India and Pakistan)
On 7th day, nuclear war ll be started, now UN ll interfere because both countries suffered enough losses....
The outcome there ll many independent states in India and Pakistan...
How dare China construct a dam in India land.
good deal, it is imperative to construct diamer-basha. the water needs are too great, india's opposition to anything beneficial to pakistan will always be there. we need to wave our hands to their 'objections' and go forward with getting this done!