The cost of the Diamer-Bhasha Dam Project has surged by 119.21 percent, rising from Rs479 billion to Rs1.05 trillion, owing to revised design parameters, enhanced security measures, and exchange rate fluctuations. Minister for Water Resources Musadik Malik disclosed the figures in a written response during a National Assembly session.
The minister explained that the design revisions were based on updated seismic parameters recommended by the International Commission on Large Dams (ICOLD). These included modifications to the main dam, diversion scheme, and hydro-mechanical works to meet revised Safety Check Flood (SCF) and Probable Maximum Floods (PMF) standards.
Malik further stated that security incidents involving Chinese contractors and expatriates necessitated significant upgrades, including increased security deployments costing Rs17 billion and the procurement of a Rs9 billion helicopter to facilitate safe transport for foreign staff. Additionally, expatriate movement from Islamabad to the site was restricted to air travel for safety reasons.
The project’s cost was also impacted by the devaluation of the rupee, with the exchange rate shifting from Rs105.3 to Rs278.3 per US dollar between 2018 and 2024, accounting for a 31.34 percent (Rs178 billion) increase. Design changes contributed an additional Rs85 billion (14.95 percent) to the revised cost. Expenses related to the Safe City Project added Rs7 billion, while Rs82 billion was attributed to interest during construction for the foreign component.
The minister noted that overall progress of Contract MW-I stood at 16.09 percent, and time overruns had been a significant factor in cost escalation. He emphasized that the Diamer-Bhasha Dam Company had implemented international best practices to monitor progress and address delays.
