ISLAMABAD: Contractor of Diamer Bhasha Dam Project (DBDP) while expressing grave concerns over the overdue payment of USD 60 million has expressed his inability to keep continue the normal pace of construction on the project if the “long-due” payments are not cleared.
According to sources in the Ministry of Water Resources, the contractor (Power China-FWO Joint Venture) of Diamer Bhasha Dam Project (DBDP) has been facing undue delay in clearing the pending payments due for the last many months especially the foreign component worth approximately USD 60 million despite repeated reminders to the Water and Power Development Authority (WAPDA). However, now the contractor has warned the WAPDA that if payments are not made then it will not be possible to maintain the normal pace of construction on DBDP, said sources.
They added that the project (DBDP) is in a very critical phase of diversion of Indus River which is due in April-2024, after which the Dam construction will and if this gets delayed it will have direct impact on completion of the project by February-29 by a year, extending completion to 2030.
“The contractor has been making every endeavour to maintain his construction schedule while the over payment has severely been affecting the mobilization of various overseas construction resources including the equipment for cofferdam,” said the sources.
Sources also added that DBDP which is the most expensive dam in the history of Pakistan with an estimated cost of around 14 billion US dollars, a year of delay apart from contractor and consultant cost claims will have a direct escalation impact of 15-20 percent roughly amounting to Rs 400-500 million (with current inflation rate) while the country will also be deprived of cheap 4500 MW hydel electricity (roughly cost Rs 300-400 billion) and a loss of 6.0 million-acre feet (MAF) water reservoir for another one year.
Sources further said that the government should clear the dues of the contractor at the earliest to save the national exchequer from further loss of time in the dam completion and additional cost. The contractor has to import various equipments from foreign countries and delay in payments has been affecting the pace of construction, especially the diversion work, sources added.
It is pertinent to mention that Diamer Bhasha Dam will have a gross water storage capacity of 8.1 MAF to irrigate 1.23 million acres of additional land while it will have a live storage capacity of 6.1 Million Acre Feet (MAF) and it will generate 18,100-Gigawatt hours (GWh) power annually after completion by February, 2029.
Diamer Basha Dam is being constructed on River Indus – 40 kilometer downstream Chilas town. The project is of paramount importance for water, food, and energy security of the country. The installed capacity of Diamer Bhasha Dam will be 4,500 MegaWatt (MW) and live storage capacity of 6.4 MAF.
The total estimated cost of Diamer Basha Dam project is around 14 billion US dollars which includes dam and powerhouse construction, land acquisition, resettlement and other associated costs.
