ISLAMABAD: Minister for Water Resources Musadik Malik said the cost of Diamer Bhasha Dam Project has increased 119.21 per cent (from Rs479 billion to Rs1.05 trillion) due to external and internal factors including revised design and to enhance security measures.
In a written reply to a question, the minister told the National Assembly on Thursday that cost of the project had been increased due to revised design of the main dam on the basis of revised seismic parameters by International Commission on Large Dams (ICOLD). He also mentioned redesign of diversion scheme, flushing tunnel due to additional site geological investigations, as reason for the changes. He also added the re-design of hydro-mechanical works due to revised seismic parameters, revised Safety Check Flood (SCF) and Probable Maximum Floods (PMF) etc as reasons for changes.
He said that security incidents of Chinese contractors and expatriates had necessitated/strengthening the security measures. He said that due to security reasons the frequent movement of expatriates from Islamabad to the site had been restricted to by air only.
Financing of Diamer-Bhasha project: Govt weighing different options
The minister said that change in exchange rate from rupees 105.3 to 278.3 per US dollar from 2018 to 2024 resulted in an impact of approximately 31.34 percent (or Rs178 billion) in cost of the PC-I of the project.
He said that 14.95 percent (Rs85 billion) cost increased due to change in the design of the project.
He said the cost also increased due to additional security deployment worth Rs17 billion and procurement of helicopter at a cost of Rs9 billion was made to ensure safe transport of foreign expatriate staff working on the project.
He said that 1.24 percent (or Rs7 billion) increase was made due to expense on Safe City Project. He said that 7.5 percent (Rs82 billion) is interest during construction for foreign component.
The minister said the overall progress of contract MW-I was 16.09 per cent. He said that major reason for cost overrun was time overrun. He said Diamer-Bhasha Dam Company had deployed international best practice for monitoring overall project progress and taking rectification measures.
Later, responding to a calling-attention notice regarding serious disruption in rice exports from Pakistan to European countries resulting in loss to exchequer, Parliamentary Secretary Commerce Zulfiqar Ali Bhatti said the government was reportedly planning to elevate the Department of Plant Protection (DPP) to an authority. He said the DPP was not issuing standard certificate after checking rice. He said the prime minister took serious action and suspended an officer and ordered an inquiry. He said that all the stakeholders should sit together to address the issue.
Earlier, the members of the opposition, Pakistan Tehreek-e-Insaf (PTI), on Thursday, continued their noisy protest on the floor of the National Assembly demanding release of Imran Khan, judicial probe into the May 9 and November 26th incidents and disrupted the proceedings by pointing out lack of quorum. They raised slogans against the government.
Deputy Speaker Ghulam Mustafa Shah suspended the proceedings for 15 minutes after declaring the house not in order when PTI’s Mohammed Iqbal Khan Afridi pointed out lack of quorum after a walkout by his colleagues.
Copyright Business Recorder, 2025
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