The Water and Power Development Authority (WAPDA) on Wednesday signed two contracts worth Rs 180 billion with the China Gezhouba Group Company (CGGC) for the construction of main civil works of the run of the river mega hydel Dasu Hydropower project, situated on the mighty River Indus.
The Rs. 115 billion contract MW-01, which is to be completed in about five years, includes construction of the main dam, appurtenant structures and hydraulic steel structures. The second Rs 64.4 billion contract MW-02 includes the construction of an underground power complex, tunnels and hydraulic structures.
Dasu Hydropower Project General Manager and Project Director Javed Akhtar and CGGC representative Tan Bixuan signed the two contracts on behalf of their organisations. Minister for Water and Power Khawaja Muhammad Asif, Minister of State Chaudhary Abid Sher Ali and Chairman WAPDA Muzammil Hussain also witnessed the signing ceremony.
Addressing the ceremony, Khawaja Asif said that the government had initiated the hydel power projects on the Indus cascade. After Dasu, the groundbreaking of Diamir Bhasha Dam and Mommand Dam will be performed during the current year.
The minister said that World Bank is providing $ 580.4 million for the project, and has also given a guarantee for another loan of $ 460 million. WAPDA will sign the financing agreement for Rs 144 billion during the current month, while another agreement of $ 350 million will be signed with foreign banks in April.
Chairman WAPDA Muzammil Hussain said that it was an important day for Dasu Hydropower Project. Underlining the significance of the project, he urged upon CGGC to complete the contracts within the stipulated timeframe in adherence with the quality of work specified for the project. He said that the construction cost of the first phase was estimated at $ 4.2 billion while the second phase cost was $ 2 billion.
It is pertinent to mention that the 4320 MW-Dasu Hydropower Project is being constructed by WAPDA on River Indus, upstream of Dasu Town in Kohistan District of Khyber Pakhtunkhwa. This is a vital development project not only for the country but also for KP Province, as the project will stabilise the economy of Pakistan, providing low-cost hydel electricity, ushering in a new era of socio-economic development in the backward and far flung areas of KP Province.
The project will be completed in two stages – each stage having a generation capacity of 2160 MW. The World Bank is partially providing funds for construction of Stage-I of the project, while a major chunk of the finances are being arranged by WAPDA from its own resources and with the sovereign guarantee of Government of Pakistan. Stage-I of Dasu Hydropower Project will be completed in almost five years and contribute more than 12 billion units per annum to the National Grid. The Stage-II, after its completion, will also provide another 9 billion units to the system every year
