ADB agrees to provide technical, financial support for Diamer Basha Dam

Ishfaq A Mughal

Finally, the Asian Development Bank (ADB) agreed on Friday to extend technical and financial cooperation for 4500 MW multipurpose Diamer Basha Dam project and an MOU in this regard likely to be signed next week.

The ADB mission, headed by Director Energy Division, Rune Stroem called on the Federal Minister for Water and Power, Syed Naveed Qamar here on Friday to discuss energy efficiency programme and matters relating to financing of the Diamer Basha Dam and other mega water and power sector projects.

Both Pakistan and ADB agreed to organize Road Shows in three different countries with donors, equipment suppliers and other concerned for co-financing of the project.

According to the sources, Mr. Stroem told the minister that the ADB is ready to extend technical and financial support for the Diamer Bhasha Dam wich will help to improve the socio-economic lives of the people and bring prosperity in the country, he observed. 

He also said that the mission is giving highest priority to this project and looking for its early execution and an MOU will be signed in next week. 

"The bank is also considering various other projects for financing and technical assistance in the water and power sector", Stroem said. 

It is important to mention here that the ADB was not willing to finance for the Diamer Bhasha Dam due to some reasons including Indian objections over the dam. 

He also gave a short brief on Tranch-II and Tranch-III under various existing programmes being funded by ADB.

The matters relating to power sector reforms, rehabilitation of Gencos and energy efficiency programmes were also discussed. The mission was given update of the power sectors reforms and energy efficiency programmes. It was also informed that the process of rehabilitation of Gencos is under way and to be completed at the earliest.

Minister for water and Power, Syed Naveed Qamar extended his gratitude for providing technical and financial support to Diamer Basha Dam project and said that the project is a milestone for the economy of the country and will meet the future water and power requirements. The government is taking high priority to this project and has completed all the formalities for construction of the project. Most of the land has been acquired and resettlement package is being implemented. He appreciated the ADB for its role as lead financer for this project and said that it will attract other donors and sponsors to fund the mega projects in Pakistan.

Chairman Wapda, Shakeel Durrani also briefed the meeting on the current status of the project and outcome of the meetings with other financial institutions.