Asian Development Bank (ADB) has yet to firm up a financing plan for construction of the $11 billion Diamer-Basha Dam (DBD) which will generate 4,500 MW power nearly two years after it committed to finance the project.
"ADB is evaluating the project and steps are being taken by the government for land acquisition, rehabilitation and resettlement of affected persons and to mitigate environmental impact, but financing plan is yet to be finalised," said Rune Stroem, Country Director, ADB, while talking to Business Recorder after attending a two-day stakeholders' seminar on land acquisition and resettlement of mega hydropower projects in Pakistan. On February 26, 2009, an ADB delegation met Prime Minister Syed Yousuf Raza Gilani and agreed in principle to finance the DBD project. Nearly two years later, ADB has yet to make any initial financing plan.
US Ambassador Robin Raphel, Chairman Wapda Shakil Durrani, Opposition Leader in Gilgit-Baltistan Assembly Bashir Ahmed Khan also addressed the seminar, which was attended by a large number of notables, elders and affected people. According to document of Wapda, GoP is approaching different donor agencies for construction of DBD. The ADB and Islamic Development Bank (IDB) have shown their willingness in this regard. The Council of Common Interest (CCI) also gave unanimous approval for the project on July 18, 2010.
"At this stage I don't know how much financing will be extended for the project," Stroem said adding that things are well. Asked, why the World Bank was not participating in this key project, ADB's Country Director replied, "I don't know, it's better to ask this question from the World Bank."
Land acquisition should be in fair and transparent manner and the affected people be resettled appropriately, Stroem parroted the land acquisition/resettlement policy objectives of the ADB.
Robin Raphel, in her address offered full co-operation to Pakistan in the energy sector, as according to her the country needs substantial investment in energy sector.
She observed that initially hydropower projects are costly but once built, they provide cheaper electricity relative to thermal and are also used to control flood waters, provide water for irrigation purpose. She said US will finance Gomal Zam Dam and Satpara Dam. In addition US is extending assistance to improve efficiency of a number of thermal power stations including Guddu thermal power station.
"We have discussed all the energy-related issues at highest level including reforms to make the energy sector sustainable," she added. With regard to Diamer Basha Dam, she stated that the safeguards are very important both for the people and the environment.
Earlier, addressing the seminar, Chairman Wapda Shakil Durrani acknowledged that in the past, Wapda did not give due attention to resettlement issues. However, now Wapda has established a special wing under Dr Raheel that deals with issues related to resettlement.
He assured the delegates that all those in the affected areas would be compensated and resettled properly.
"I have a lot of regard for the elders, notables and members of the GB Assembly and they are extending their full co-operation and I would like to assure them that all their genuine demands will be met," he maintained. He, however, cautioned that such measures would take time.
Later talking to newsmen, Chairman Wapda stated that the government had allocated a substantial amount for DBDP in the budget, which is being utilised but at the same time Wapda will arrange finances from other sources. He said Wapda has already paid compensation for 150 acres of land.
Chairman further said that all possible measures are being taken to ensure that the construction of DBD would have a positive impact on the life of the affected people.
Diamer-Basha is expected to enhance the potential life of Tarbela reservoir to 35 years, which is filled with silt. In addition 8.1 MAF gross storage and 6.4 MAF live storage will be available for irrigation purposes. Weighted annual value of storage water was worked out as Rs 50.8 billion. The project will pay back its cost in eight years. Bashir Ahmad Khan, Opposition Leader in GB Assembly, assured full support for the national project despite the fact that he would be one of those displaced during the construction of the dam. Chairman Diamer-Basha Dam affected people committee, Atta Ullah who hails from Chilas accused Wapda of not giving preference to local people in jobs. "What has been claimed by the top brass of Wapda is paper work to show it to the donors, nothing has been done for the affected people on ground," he said.
He urged Wapda to take the people on board in all the matters related to resettlement. Dr Raheel, General Manager, land acquisition and resettlement gave a detailed presentation on the project whereas Vakar Zakria, a representative of Hagler Baily Consultants, presented a town plan as well as a plan for tourism development.
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