ISLAMABAD: The Senate Standing Committee on Water and Power on Wednesday said that the construction of Dasu Dam will be initiated by the end of this year with the financial support of the World Bank.
After completion of its first phase the dam will generate 2160MW electricity. The project is on track, financing line up and the dam will be constructed in phases due to financial constraints, explained Chairman WAPDA Syed Raghib Shah to the committee. This is for the first time that that WB is providing financing for land acquisition of the project. The WB has shown full commitments to provide financing for stage one and it will provide $700 million, ICBC China $2 billion and Deutsche Bank $1 billion and the remaining will be arranged by WAPDA/GoP.
Chairman WAPDA claimed that the project will complete in 2019, which will store one million acre feet water apart from cheaper power generation. Initially two tunnels will be construction in phase one. After completion all phases, the dam will be able to generate 4320 MW hydel power with total cost of $8 billion. He also informed the committee that the dam will give more benefits once another dam, Diamer Basha completed.
State Minister for Water and Power Abid Sher Ali has informed the committee that the government has concentrated on cheaper power generation and give high priority to construction of dams. The ministry properly pursuing the construction of Dasu and other hydel projects, he added. About Keyal Khwar Hydropower Project is located in Khyber Pakhtunkhwa in Keyal Khwar in Kohistan district. Installed capacity of the dam is 128 MW and its completion period is four years.
Bid for the project was invited on June 21, 2013 and only bidder M/s Sinohydro Group-Hajvairy JV submitted bid. Financing institution KfW, Germany asked for negotiation and bid negotiation were carried out to rationalize rates and reduced to Rs14.544 billion (15% above the estimated cost). In combination with the inflation rate of approximately 2% prevailing in the period between the submission dates of the engineer’s estimated and the bid received on June 2013, the reduced bid price was 12% above the engineering estimates. Chairman WAPDA told the committee that after obtaining no objection from KfW, WAPDA issued the letter of acceptance to the bidder M/s Sinohydro Corporation on Jan 29, 2014.
The committee also discussed the matter pertaining to appointment of Board members of all power distribution companies. Chairman of the Committee Senator Zahid Khan directed the ministry of water and power to provide names of all members of discos to concerned senators. If any one has any objection over any Board member, it should bring in front of the committee and also to the ministry, it will be discussed and decision will be taken accordingly. Khan also stressed on generation of cheaper power so that the people may get some relief while paying their power bills.
BRUSSELS: European Union (EU) leaders decided early Sunday to give Russia one week to de-escalate ...