The Asian Development Bank (ADB) has failed to firm up financing for the 4500 mw multi-billion dollars Diamer-Bhasha hydropower project, despite giving assurance of financing to Prime Minister Yousuf Raza Gilani some two years ago. However, the Economic Co-ordination Committee (ECC) of the Cabinet in its meeting Thursday allowed the Water and Power Development Authority (Wapda) to float Rs 20 billion Sukuk bonds and Term Finance Certificates (TFCs) to finance the project.
ADB Director General Central and West Asia Department had met Prime Minister Gilani on February 26, 2009 and had assured him of financing for the project, but has still to make good his promise. On Saturday, Acting Country Head of the ADB held a meeting with the Minister for Water and Power, Pervez Ashraf, to review the progress and other related matters of the project.
"ADB delegation informed the meeting that the Bank is already in the process of due diligence of the project and all aspects of this very important hydel power generation project have been included for assistance," says an official statement.
Wapda has already started land purchase for the project but the affectees are unhappy with the organisation for not giving them priority in jobs. Ashraf said that after completion, the dam would generate cheaper electricity of 4500 mw with live storage capacity of 6.4 million acre-feet to irrigate thousands of acres of land. He said that the life of Tarbela dam would extend for about 35 years after completion of Basha dam. He said that Pakistan is facing energy crisis and taking all possible measures to mitigate it.
The Minister said that the government is also working on various other hydel power projects to reduce dependence on thermal power and to generate cheaper and clean electricity to meet the future electricity needs. He said that the government is very enthusiastic and the people of the area are very keen for early construction of the project. He said that Wapda has started implementation of the resettlement plan and land acquisition.
Earlier, Wapda Chairman Shakeel Durrani briefed the meeting on the current status of the dam, allocation of funds by the government during 2009-10, sanctioning of Rs 20 billion for the 2010-11, establishment of land acquisition and resettlement unit in Wapda, land acquisition in Gilgit-Baltistan and Khyber Pukhtunkhaw, upgradation of KKH, three years'' resettlement plan and other related matters.