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DIAMER BASHA DAM PROJECT

Status as on June-20, 2011
WAPDA web site

PAKISTAN WATER AND POWER DEVELOPMENT AUTHORITY

 DIAMER BASHA DAM PROJECT
LOCATION
Diamer Basha Dam Project (DBDP) is proposed to be located on the Indus River
315 km (195 miles) upstream of Tarbela Dam site, about 180 km (113 miles) below
the town of Gilgit and about 40 km (24 miles) downstream of Chilas, the district
headquarter of Diamer in Gilgit-Baltistan.

DESCRIPTION OF PROJECT STUDIES

The techno-economic evaluation / feasibility studies of DBDP have been carried out
over the last 26 years. Notable among these are the following three (3):-

Feasibility Report MONENCO - 1984

In 1984, a report titled “Basha Storage and Power Project – Feasibility was
prepared by Montreal Engineering Company (MONENCO) of Canada. They
proposed a 200 meter high zoned earth / rock fill dam with central core and
concrete cut off to bed rock, underground power house on the left bank of the
river Indus, installed generation capacity 3360 MW with annual energy
generation about 14000 Gwh corresponding to Full Supply Level (FSL) of
1160 masl having storage capacity of 5.7 MAF.

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 Feasibility Report NEAC - 2004
In June 2002, Wapda assigned the task of preparing a detailed project
feasibility report to a joint venture NEAC, comprising of renowned
international & national engineering firms with M/s. NESPAK as a leading
firm.

In August, NEAC submitted “Basha Diamer Dam Project – Feasibility Report”.

They recommended a Roller Compacted Concrete (RCC) gravity dam of 282
meter height above bed rock, two (2) underground power houses of 4500 MW
total installed capacity, 2250 MW each, on right and left banks. Average
annual energy generation was estimated around 18,300 Gwh out of which
about 16,800 Gwh was at Basha and additional 1450 Gwh at Tarbela. Live
storage capacity at FSL of 1170 masl was 7.3 MAF.

Design Report in DBC - 2008

Diamer Basha Consultants (DBC), a joint venture of international & national
consulting firms, M/s. Lahmeyar International Germany as lead firm was
engaged by Wapda in July 2005 for Review of Feasibility Report, Engineering
design and Tender Drawings / Documents already done by M/s. NEAC. DBC
have completed detailed engineering design of the project by June-30, 2008.
Main features are given below:-

MAIN FEATURES OF DBDP

Main Dam
Maximum Height 272 m
Type Roller Compacted Concrete (RCC)

Diversion System 2 No. Diversion Tunnels (right side)

1 No. Diversion Channel (right side)
Upstream and Downstream Cofferdams

Main Spillway
No. of gates 14
Size of gate 11.5 x 16.24 m

Reservoir
Full Supply Level 1160 masl
Crest Elevation Level 1170 masl
Gross Storage 8.1 MAF (10.0 BCM)
Live Storage 6.4 MAF (7.9 BCM)
Min. operating level 1060 masl

Outlets In Dam Body

Low level 2
Flushing 5

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Power House(s) 2
Total Installed Capacity 4500 MW
Location and Type Underground, one each on right and left side
No. of Units 12 each of 375 MW
Average Generation 19208 Gwh/year
(Diamer Basha = 18097 Gwh/year)
(Tarbela = 1111 Gwh/year)

PC-I Cost Rs.894.257 billion (with FEC Rs.312.943 billion)

EIRR 15.3%

FIRR 8.04%

Benefit/Cost Ratio 1.43
(Discount Rate 12%)

CONCERNED AUTHORITIES

Sponsoring Government of Pakistan

Execution Water & Power Development Authority (WAPDA)

Operation & Maintenance Water & Power Development Authority (WAPDA)

Concerned Federal Ministry Ministry of Water & Power, GoP

ENVIRONMENT IMPACT ASSESSMENT

No. of villages affected 32

No. of households / families affected 4228

Population affected 30,350

Agricultural land submerged 2660 acres

Length of KKH submerged 100 km

Length of KKH relocated 140 km

Prehistoric rock carvings 33000 Nos.

Infrastructure Electricity Lines, Roads etc.

Total land to be acquired 37,419 Acres
(Private Land = 18,014 Acres)
(Govt. Land = 19,405 Acres)

• Nine Model Villages with all the amenities shall be built for resettlement
of the affectees.
• Selected important rock carvings shall be displayed in a museum in
Chilas others shall be preserved in situ.
• Resettlement and Environment management plans have been prepared
on the international norms.

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MAIN PROJECT IMPLEMENTATION
Implementation / construction activities of main project shall commence in
2012-2013 and completion is envisaged in 2020-2021. Implementation of the main
project has been divided in 5 Lots as discussed below:-

Lot No. Description

LOT-1 Concrete Dam and Related Structures including Diversion Tunnels and
Permanent Access Bridge.
(Local Rs.87680 + Foreign Rs.58480 = Total Rs.146160 million)
LOT-2 Underground Power House Works and Related Structures (Left and
Right Banks)
(Local Rs.40960 + Foreign Rs.13840 = Total Rs.54800 million)
LOT-3 Hydro-Mechanical Equipment and Hydraulic Steel Structures
(Local Rs.3360 + Foreign Rs.30400 = Total Rs.33760 million)
LOT-4 Power Plant Generation Equipment (Left and Right Bank)
(Local Rs.8240 + Foreign Rs.74160 = Total Rs.82400 million)
LOT-5 Electrical High Voltage Equipment and Power Plant Electrical
Equipment (Left and Right Bank)
(Local Rs.8720 + Foreign Rs.76320 = Total Rs.85040 million)

GOP’S APPROVALS

Main PC-I of Diamer Basha Dam Project for Rs. 894257 million with
F.E.C Rs. 312943 million was approved by ECNEC on August 20, 2009.

PC-I (Part-1) for land Acquisition and Resettlement was approved by ECNEC
on November 06, 2008 for Rs. 60000 million with F.E.C Nil. Its cost is included
in the Main PC-I.

PC-I for KKH By-pass, Shatial-Thore Nullah to Existing KKH was approved by
ECNEC on August 20, 2009 for Rs. 3844.432 million with F.E.C Nil. Its cost is
also included in the Main PC-I.

Revised PC-I of Thakot bridge was approved by CDWP on June 08, 2010 for
Rs. 647.000 million.

Diamer Basha Dam Project was approved unanimously by Council of
Common Interests (CCI) on 18.07.2010 for National Consensus.

CONFIDENCE BUILDING MEASURES

A Vocational Training Institute (VTI) has been setup in Chilas which shall
provide training to the locals in different trades so that locals shall be
employed by the contractors for Main Project.

Wapda shall up grade three (03) schools, three (03) hospitals in different areas
of Gilgit-Baltistan and a Cadet College in Chilas, Establish a Trauma centre
and Gilgit Scout Wing for security purpose and convert Khapku Fort into
Museum, provide financial assistance for Polo Team.

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BENEFITS OF THE PROJECT

8.1 MAF Gross storage and 6.4 MAF Live storage of water will be available
for supplementing irrigation supplies. Weighted annual value of storage water
worked out as Rs.50,824 million.

This reservoir would act as silt trap, which in turn would have direct effects on
existing and proposed reservoirs on Indus downstream of Diamer Basha Dam
Project.

Enhance the potential life of Tarbela reservoir by 35 years.

Water impounded by reservoir shall help to mitigate downstream flood losses.
The avoidance of flood damages cost would be even much more than
Rs.2, 331 million per annum.

Designated installed capacity is 4500 MW with an average annual energy
generation of 19,208 GWh. The total average annual power benefits shall be
Rs.106,604 million.

The releases from DBD reservoir shall be utilized at different proposed dam
sites between Diamer Basha and Tarbela reservoirs for production of cheap
hydroelectric power.

Power transmission to be developed under this project will provide corridor for
the proposed projects like Dasu, Pattan, Bunji etc. in Gilgit-Baltistan and
Khyber Pakhtunkhwa.

Employment opportunities (direct employment = 13,561 persons & indirect
employment = 2.5 million persons), particularly to the locals during the
construction and operation.

Economic and social development of Gilgit-Baltistan and
Khyber Pakhtunkhwa.

The project will pay back its cost in 8 years.

FINANCING ARRANGEMENTS

Asian Development Bank (ADB) Reconnaissance Mission Reviewed the
Project during March-April, 2009. The Bank Aide Memoire had been
approved by Wapda and GoP. ADB’s pre-condition of National Consensus for
funding DBDP is fulfilled as Council of Common Interests (CCI) unanimously
approved DBDP on 18.07.2010. ADB in a meeting held on 24.05.2011 has
been agreed as follows:-
1) ADB Pakistan Mission would send a Concept Paper to WAPDA.
2) ADB would send a “Loan Appraisal Mission” for Diamer Basha Dam
Project at the earliest.
3) ADB would also allocate project Number to DBD Project and communicate
to WAPDA in June 2011.

Islamic Development Bank (IDB) is agreed for partially financing DBDP by
financing US $ 100 million. Wapda approached US Aid for help in financing
the project.

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US Aid has agreed to finance / reimburse a part of the expenses made by
Wapda so far. US Aid has also assured grant of US $ 200 million each year
for the project. Project proposal has been taken up with the Saudi Fund for
Development. Japan Bank of International Cooperation (JBIC) has also been
approached for the arrangement of financing in construction of DBDP.

During the visit of honorable President of Pakistan, the Kuwait Fund for Arab
Economic Development has been agreed to finance the project. Wapda has
requested Economic Affairs Division (EAD) GoP to approach the Kuwait Fund
for lending of their technical & commercial group for appraisal of the project.

Rs.15 billion (Wapda self financing = Rs.10 billion & GoP funding = Rs.5
billion) have been allocated by GoP for financial year 2010-2011.

The Economic Coordination Committee (ECC) of the Cabinet considered the
summary dated 6th January, 2011, submitted by Ministry of Water & Power on
“Proposal for Funding of PKR 20 Billion for Diamer Basha Dam Project”
and allowed WAPDA to raise funds of Rs.20 billion (with tax exemption) under
Government of Pakistan guarantee from the market through TFCs/SUKUKs
to be repaid by WAPDA from its own resources.

WAPDA is negotiating for loan from Employees Old Age Benefit Institution
(EOBI).

CURRENT STATUS OF PRE-CONSTRUCTION OF MAIN CONTRACTS

Numerous pre-requisite activities regarding development of infrastructure are

underway. Current status of these activities is as under:-

Construction of bridge at Thakot on Indus River

• Thakot bridge is complete.
Land Acquisition
• Priority Land Acquisition has started.
• Economic Coordination Committee (ECC) of the Cabinet, GoP on
29.06.2010 has approved the revised Compensation Rates
recommended by Ministerial committee constituted by Prime Minister.
Federal Cabinet in its meeting held on 14.07.2010 has endorsed decision
of the ECC of the Cabinet, resultantly Land Compensation Cost has
increased from Rs.26.4 billion to Rs.41.8 billion.
• WAPDA has provided funds to the tune of Rs.3050 million for payment of
Compensation to affectees in Gilgit-Baltistan. Distribution of
compensation to affectees in Project Colony & Composite Model Village
at Harpan Das is in progress.
• Rs. 92 million transferred to DCO Kohistan for acquisition of land in
Khyber PakhtunKhwa.
• One Window Compensation Cell has been established by Deputy
Commissioner, Diamer.

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KKH Relocation
• 100 km of KKH will be submerged due to impounding of reservoir, this
portion is to be re-located on higher elevation. The Executive Committee
of the National Economic Council (ECNEC) in its meeting held on
26.05.2011 considered the proposal for change of Executing Agency
from NHA to WAPDA and took the following decision:

a) NHA will execute the subject project on the same approved cost
and design/specification by completing the requisite re-tendering
process within weeks.

b) WAPDA will transfer the requisite funds to NHA. Minister for

Water & Power will discuss with WAPDA and NHA to chalk out
time schedule to ensure completion of the project on fast track
basis.

KKH Up-gradation
• NHA is executing this work.

Project Colony in Thor Valley

Wapda has planned construction of Project Colony in Thor Valley, Chilas,
Distt. Diamer through 15 packages. 09 packages are awarded and remaining
06 in pipeline.

Composite Model Villages

The construction work of Composite Model Village–II (Harpan Das).is planned
through 7 contract packages. One package has been awarded and due to re-
planning of Composite Model Village-II, processing of further packages is
being held up.

Ceremony for Commencement of Project

Preparation for Ceremony for commencement of Diamer Basha Dam Project
is in progress.