The Water and Power Development Authority (Wapda) has responded to criticism from the Central Development Working Party (CDWP) regarding the steep rise in the cost of the Dasu Hydropower Project, which has escalated from Rs480 billion to Rs1.74 trillion, coupled with a 10-year delay.
According to a report published by Dawn, in its submission to the CDWP, Wapda defended the cost increase, attributing 85% of the surge to the depreciation of the rupee against the US dollar, which has moved from Rs100 in 2014 to Rs280 in 2025. The remaining increase was linked to an expanded scope of work resulting from the project’s complex nature.
The authority also clarified that the delay and cost escalation were partly due to security concerns following two deadly attacks on contractors’ convoys. As a result, Chinese engineers and workers engaged in the project have been transported by helicopter to ensure their safety.
Wapda further argued that the absence of a project director had been rectified with the appointment of a dedicated team, including a full-time project director with 25 years of experience in the relevant field. The team also comprises top-tier international consultants, including experts from Japan and Turkiye, who supervise the project’s implementation.
Regarding the project’s financial structure, Wapda explained that contracts, including the relocation of the Karakoram Highway, were awarded through international competitive bidding, with most costs denominated in local currency. The costs associated with foreign exchange were relatively small.
The Dasu project, initially scheduled to begin in June 2014 and complete in December 2019, was delayed due to land acquisition issues. Work finally commenced in January 2020, after a revision of land acquisition rates approved by the Executive Committee of the National Economic Council (Ecnec) in October 2019.
Wapda’s explanation was presented during CDWP proceedings, where officials argued that despite the cost increases, justifications had been provided for the project’s delays and associated escalations. The CDWP has referred the project for final consideration by Ecnec.
