New Delhi, Oct 3 (IANS): As the dispute in Pakistan over the future of Diamer-Bhasha Dam’s power-generation continues, latest figures on physical progress, costs, and delays point to challenges that extend beyond a single government decision, according to a new report.
Pakistan may cancel the power-generation component of the Diamer-Bhasha Dam.
This has raised questions about the future of one of the country’s major infrastructure projects, as “hydropower and water-storage schemes face persistent delays, rising costs, and financing and implementation challenges,” reports Assahifa.
The challenges facing Diamer-Bhasha extend beyond the dispute over electricity generation to the construction of the dam itself.
According to the Auditor General’s report, physical progress stood at just 19.95 per cent, compared with financial progress of 39.67 per cent and a target of 57.78 per cent for fiscal year 2024-25.
The original approved cost of the main dam construction was Rs 479 billion.
The report said Rs 151 billion had been spent on land acquisition and resettlement against a revised budget of Rs 149 billion.
“Meanwhile, the future power-generation facilities, for which a contract has not yet been awarded, require an estimated investment of Rs 1.424 trillion,” said the report.
According to data, combined financial exposure associated with the Dasu Hydropower Project, Diamer-Bhasha Dam, and Neelum Jhelum Hydropower Project has reached Rs 3.9 trillion (Pakistan rupee) – “reflecting delays, land acquisition problems, design revisions, and operational failures”.
Now, the Pakistani government had decided to cancel the power-generation component of Diamer-Bhasha Dam, retaining the project as a water-storage facility, reports BRIEFPK. However, Pakistan’s Power Division rejected the report, describing it as “fake news”.
According to BRIEFPK, “the internal memorandum warns that postponing the installation of water intakes, isolation gates, tunnel stubs, and other waterway structures until after the reservoir fills could make their completion exceptionally risky and expensive”.
Despite the dispute over the project’s future, official plans continue to include provisions for electricity generation at Diamer-Bhasha.
BRIEFPK argues that keeping the project in long-term plans does not necessarily rule out the cancellation of its power-generation component, “but may instead reflect uncertainty over how the decision is being implemented, with the project retained on paper while funding for generation and transmission facilities is deferred”.
