Pakistan to seek Japanese loan for mega dam

Pakistan is likely to seek the much-required foreign exchange for the construction of the mega Diamer-Bhasha Dam Project worth $8.505 billion from New JICA (Japan International Cooperation Agency) under the Yen Loan 2008 Programme, official sources said here Saturday.

This project, along with other 18 projects relating to water, power and other sectors, would be tabled before the Japanese authorities during the ‘Consultation of Yen Loan 2008’ meeting. Officials of New JICA, EAD and other concerned ministries would attend the meeting in the Economic Affairs Division on Monday.

The detailed engineering and design of the Diamer-Bhasha Dam project has been under review by the WAPDA and would be completed soon.

A senior official said the construction of the dam was expected to start in the middle of the year 2009. The Central Development Working Party in its meeting held last month had approved the acquisition of land for the dam and resettlement worth Rs116.607 billion.

The dam would be built on Indus River, and after completion, it would have an annual 6.4 million acres feet surface water storage capacity, which would supplement irrigation supplies during low-flow periods.

The project will also harness renewable source of clean and cheap energy through installed capacity of 4,500 megawatts and reduce dependence on thermal power, hence, saving foreign exchange.

The dam would pay back its cost in ten years, the official added. The official said 99 per cent land of the mega dam was located in the Northern Areas and only one per cent power area would be in North West Frontier Province.

The official said that Rs200 million had been allocated for the detail design of the project in the 2008-09 federal budget. The dam has immense importance, as it was the largest project ever executed in any sector in the country.

The construction of the project would commence next year following international competitive bidding and every effort would be made to ensure that the highest professional standard of quality and safety were maintained.

The project would go a long way to cope with the increasing demand of water and electric power in the country, the official said, adding that it would help increase the ratio of low-cost hydel power in the national grid.

The Diamer-Bhasha Dam will be the highest roller compacted concrete (RCC) dam in the world with more than 100km long reservoir and 272-metre in height.