ISLAMABAD: Prime Minister Shehbaz Sharif has directed the concerned ministries and entities to devise a mechanism for fast-tracking the implementation of strategic projects, with immediate focus on the Diamer Basha Dam Project (DBDP), well-informed sources in the Ministry of Water Resources told Business Recorder.
Presiding over a high-level meeting on hydropower projects, the prime minister directed that full support be extended by district and local administrations, with the backing of respective provincial governments, to expedite the execution of Water and Power Development Authority (WAPDA) projects.
The Ministry of Planning, Development and Special Initiatives (PD&SI), Economic Affairs Division (EAD), Ministry of Finance, and Ministry of Water Resources were directed to ensure uninterrupted financial flows through PSDP grants, rupee cover, and other financing avenues to enable timely completion of major WAPDA projects, including Diamer Basha, Mohmand Dam, and Dasu Hydropower Project.
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Sources said development partners have shown reluctance to commit the required USD10 billion for Diamer Bhasha—USD8 billion for the project and an additional USD2 billion for transmission infrastructure—despite its critical role in enhancing national water security. The project is expected to add 6.4 million acre-feet of water storage and generate 18.1 billion units of hydroelectricity annually.
On financing, the prime minister directed that to meet funding requirements over the next five years, the Ministry of PD&SI ensure adequate allocation and release of funds through the Public Sector Development Programme (PSDP). For commercial financing, $500 million per annum will be arranged over the next seven years to bridge the financing gap for Diamer Basha, with immediate implementation of the decision.
It was decided that processing of the revised PC-I of DBDP (dam and land acquisition & resettlement) will be fast-tracked and completed by December 31, 2025. Land acquisition for the project began in 2010, with approximately 9,270 kanals acquired by 2016; mutation of the acquired land will be completed at the earliest.
The district administration was directed to demolish illegal constructions within the project’s reservoir area on a priority basis by December 31, 2025. The National Grid Company (NGC) and Power Division were instructed to immediately finalise the power evacuation plan for DBDP, while the Power Division will engage with the Ministry of Finance and EAD to arrange financing.
To meet commercial financing needs, preference will be given to concessional long-term financing from multilateral and bilateral sources, international capital markets, and sovereign wealth funds. The Ministry of Finance and EAD will steer the process.
The prime minister further directed that financial closure of all future projects must be completed before commencement to avoid cost and time overruns.
Mohmand Dam Project: The Ministries of Finance and PD&SI, along with EAD, were directed to ensure adequate PSDP funding to meet project requirements, while the revised PC-I will be completed on a fast-track basis.
It was also decided that the Ministry of Water Resources, WAPDA, and chief secretaries of the four provinces will develop a cost-sharing model, including options such as capital surplus, water cess, and water pricing. As an interim measure, provinces will be requested to contribute proportionately. This task is to be completed by March 31, 2026.
The governments of Khyber Pakhtunkhwa and Gilgit-Baltistan (GB) were directed to play a proactive role in managing local issues and facilitating land acquisition and resettlement. The tenure of commissioners, deputy commissioners, and SPs in districts hosting WAPDA’s strategic projects will be protected.
The prime minister also directed that WAPDA’s efficiency and implementation capacity be enhanced to improve governance, quality assurance, and timely delivery.
“Oversight and accountability mechanisms for contractors and consultants should be strengthened through enhanced international monitoring and strict enforcement of contractual obligations,” he maintained.
The meeting further directed the Ministry of Water Resources, Ministry of Law and Justice, and WAPDA to revive the WAPDA Act, 1958 by December 31, 2025, restoring provisions for accountability, including termination of employees on grounds of inefficiency or misconduct, to safeguard against misuse of authority.
The Ministry of PD&SI, Ministry of Water Resources, and WAPDA were instructed to immediately revive work on the rehabilitation of the 969 MW Neelum Jhelum Hydropower Project, with all technical, financial, and administrative actions expedited to ensure timely completion.
The Ministry of Water Resources, Power Division, NGC, NEPRA, and WAPDA were directed to ensure integration of WAPDA’s priority projects into the Integrated Generation Capacity Expansion Plan (IGCEP) 2035 and beyond, aligning national energy and water strategies.
The GB Administration was directed to immediately complete acquisition of reservoir land at Gini and hand over possession to WAPDA. Leases granted within the reservoir area (elevation 1,170 masl) will be cancelled, with a commitment to extend lease areas beyond reservoir limits, if required, for pozzolan deposits under Section 75 of the Gilgit Mining Concession Rules, 2024.
The GB Administration was further instructed to ensure that no party—including local tribes, leaseholders, or investors—interferes in the Gini pozzolan matter, as such interference could compromise the security of Chinese and local contractors and disrupt material supply for Diamer Bhasha and Dasu projects. The prime minister also directed WAPDA to pay royalty to the GB government in accordance with the law.
Planning Minister Ahsan Iqbal was directed to convene a meeting to resolve the boundary dispute between Khyber Pakhtunkhwa and GB by December 31, 2025.
WAPDA will complete the Harban Das Model Village as committed under the 2025 Agreement, while the GB Administration will complete verification, disbursement, and possession accordingly. The Ministry of PD&SI will approve the revised PC-I to ensure fund availability to meet agreed timelines. The meeting also approved rehabilitation of the Chilas airfield, citing its importance as a secure, rapid, and cost-effective transport link for movement of personnel and foreign experts to key dam project sites.
Copyright Business Recorder, 2025
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