Germany and a Chinese bank have offered up to $3 billion for the Dasu Dam project. PHOTO: FILE
Abbas said four tunnels would be constructed and the project would be completed by 2019. The World Bank is financing the dam and it is the sole project for which the bank has provided funds for land acquisition.
Germany will provide $1 billion and Industrial and Commercial Bank of China will give $2 billion for the project, which will generate 4,230 megawatts of cheap electricity.
Abbas said work orders would be issued next month after the Pakistan Engineering Council established the categories of contractors. Of these, 70% foreign and 30% local contractors would be hired.
Senator Zahid Khan, who chaired the meeting, asked the Wapda chairman to hire maximum contractors from the country.
Discussing Diamer Bhasha Dam, Abbas told the panel that it would cost $12 billion and would take eight years to complete.
Zahid Khan stressed the need for completing work on hydroelectric power projects as early as possible in the larger national interest.
State Minister of Water and Power Abid Sher Ali informed the committee that the prime minister had already given approval for development projects across the country.
He also assured committee members that a list of board of directors of all power distribution companies would be provided to them.
Published in The Express Tribune, March 20th, 2014.
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Thanks to Germany and thanks to China.
The WB has to do some explanation. Financing the transfer of land ownership does not involve any creation of value added. Secondly, prior knowledge could have led to land speculation and significant land price increases (in areas of land expropriatrion). In a corrupt country you expect huge windfalls for some rich speculators. Financed by a WB loan and likely to be repayed with tax money unless it an enclave project in which the returns (sale of electricity and water) are used to finance to the construction and operation of the project. Very unlikely in Pakistan. Maybe the first and last WB project in which this happens.