NewsThursday, March 20, 2008
WB to give $750m for construction of Munda Dam
* WAPDA not happy with delay in project
By Zafar Bhutta
ISLAMABAD: The World Bank (WB) has expressed its willingness to provide $750 million to Pakistan to meet the extra cost of building the Munda Dam, sources in the Water and Power Ministry told Daily Times on Wednesday. According to the government, four dams – Munda, Kalabagh, Akori, and Bhasha – have to be built by 2016. The Munda Dam will be able to store 0.67 million-acre feet of water, and will generate 740 megawatt of hydel electric power. The dam will also help to control flooding in Peshawar. The sources said the cost of building the dam, which was estimated at $6.1 billion in September 2005, had increased by 10 percent due to a surge in the prices of construction material. “The WB is willing to help Pakistan meet the extra cost of building the dam,” the sources said, adding that the government was also sourcing finance from local banks. Unhappy WAPDA: The sources said the Water and Power Development Authority (WAPDA) had decided to build the dam after a US company, Amzo Corporation, which had been issued a letter of intent, refused to take up the project. “WAPDA is not happy with the delay in the project,” the sources said, adding that the authority wanted the project to complete within the given timeframe to meet power shortage in the country. They said the Water and Power Ministry and WAPDA had warned the Finance Ministry and Planning Commission that further delay in building the dam would increase the cost of construction. The government allocated Rs 10 billion to acquire the land for five dams, including the Munda Dam, in its Public Sector Development Programme (PSDP) for 2007-08. “But not a single penny has been spent on land acquisition,” the sources said. The feasibility study of the dam was originally conducted by Japanese consultants, who suggested about 10 cents per unit (Kwh) generation cost. But an Azmo representative claimed that many assumptions of that study were wrong and the tariff setting stage was far away. The Munda Dam is being constructed on the River Swat, which is considered an ideal site for a hydro power station. The dam will generate Rs 361 million annually in terms of “water-user charge” for the NWFP government. It will also help ensure equity in water allocations; reduce flood risks in Nowshehra and irrigate 29,000 acres.
Courtesy Daily Times