Agreement soon with International Bank for Dasu dam construction

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ISLAMABAD Apr 13 (APP): The National Assembly was informed Thursday that agreement with International Bank will be signed soon for ensuring money to construct much delayed Dasu dam.
Minister of State for water and Power Abid Sher Ali informed the House during Question Hour that agreement with an International Bank for US$ 350 million is expected to be finalized soon as International Banks are in the process of providing commercial financing up to US$ 800 million against World Bank PCG and the Government of Pakistan guarantees.
He said an agreement for commercial financing of Rs 114 billion against the Government of Pakistan guarantees and WAPDA balance sheet, was signed on March 29, 2017 with the consortium of seven local banks led by Habib Bank Limited.
He informed that other banks in the consortium are national bank of Pakistan, United Bank, Bank Alfalah, Askari Bank, Faysal Bank and Meezan Bank.
Answering a supplementary question, the minister said, loan agreement between the Government of Pakistan, WAPDA and World bank for an IDA Credit of US$ 588.4 million along with an IDA Partial Credit Guarantee of US$ 460 million was signed on August 25, 2014 at Islamabad and this loan agreement is effective from November 20, 2014.
He further informed that the project is located at seven kilometer north of dasu Town in Kohistan district of Khyber Pakhtunkhwa province and 350 kilometer north of Islamabad. The site is 74 kilometer downstream of proposed Diamer Bhasha dam project site.
Responding to another supplementary, the minister said, this dam could have been constructed 15 years back but it delayed due to improper policies of the previous governments.
He said due to delay the cost of project has surged to three fold than the original proposed cost as he hoped that it will be completed at earliest possible. “We are confident of its timely construction as our government has a history of completing projects well within time.”
In this regard, he mentioned to 600 Mega Watt Bhikki Power Project within a record period of 28 months against the period of 40 months.
He said there was an issue of rate in land acquisition that has been addressed and sufficient amount has been released and the owners are being paid for land on the same rate as specified for Diamer Bhasha dam land owners.
He said 1000 acre more land is also being acquired for the dam, owners are being paid, the contractor has been mobilized and work on the project shall start within next couple of months.
The minister said, the stage-1 of the project is being implemented by WAPDA with the support of World Bank and the main civil work has been awarded to M/S China Gezhouba Group Company on March 08, 2017.
He said the Chinese contractors are already working at site for preparatory work as 392 acre land has been acquired and Rs 695 million have been paid to land owners while further land acquisition and payment process would soon be completed.