PM to inaugurate construction work on Dasu Dam

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ISLAMABAD, Jul 9 (APP): Prime Minister Muhammad Nawaz
Sharif on Monday will inaugurate commencement of construction
work on Dasu hydropower project with installed capacity of
4,320 MW.
The project is being constructed on river Indus upstream
of Dasu town in Kohistan district of Khyber Pakhtunkhwa (KPK).
The hydropower project is a run off river project
located at 7km upstream of Dasu town.
The site of Dasu hydro power project is 74km downstream
of proposed Diamer Bhasha Dam site and 350km from Islamabad.
The project will have total installed capacity of 4320
MW which is among the priority projects under the National
Power Policy 2013 and Vision 2025 of Government of Pakistan,
the PM office media wing said in a press release on Sunday.
The project will be implemented in two stages. Each
stage will have capacity of 2160 MW. About 12 billion power
units would be generated annually on completion of Stage-I.
PC-I of Project (Stage-I) of Rs. 486,093 million was approved
by the ECNEC in March 2014.
Dasu Hydropower project is a component of least-cost
electricity generation strategy of the Federal Government to
add low-priced hydel electricity to the national grid to
overcome electricity shortages in the country, improve the
ratio of hydel electricity in the overall system, stabilize
electricity tariff and provide relief to the consumers.
Main civil works contracts of the project is awarded to
M/s CGGC, China. Contract Agreement with M/s CGGC, China was
signed on March 8 this year after which the contractor has
commenced its services with effect from June 23.
The estimated cost of the Stage-I is about US$ 4.2
The World Bank (IDA) is providing a credit of US$ 824
million, while remaining funds are being arranged by WAPDA
from its own resources with partial guarantee of World Bank
and the rest by the Government of Pakistan.
The Government has already arranged local financing for
the project worth Rs.144 billion from a consortium of local
banks in March this year.
It has also secured US$ 350 million last week from the
international financial market at a very competitive rate and
a staggered draw down to suit the project’s financing
Agreement with local commercial banks for financing upto
PKR 144 billion was signed on March 29 out of which the first
tranche of PKR 25 billion has been received in May 2017.
A total land of 9,917 acres is required for the project
while most of the land for preparatory and main works has been
acquired. Process for acquiring remaining land for the power
project is in progress.
An amount of Rs. 1131 million has been disbursed to
affectees uptill now for awarded land.
Dasu Hydropower Project is a vital development scheme
not only for the country but also for KP province, as the
project will stabilize the economy of Pakistan by providing
low-cost hydel electricity besides ushering in a new era of
socio-economic development.