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Brief Overview Diamir Bhasha Dam and Mohmand Dam

05-Jul-2018

REP-300

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• The Honorable Supreme Court of Pakistan (CJP) has issued directives for immediate construction of Diamir Bhasha

and Mohmand dams.

• While Chief Justice Mr. Saqib Nisar has announced a donation of PKR 1mn for the cause, he also formed a

committee under the chairmanship of Water and Power Development Authority (WAPDA) Chief to monitor the

progress of work as well as an account to collect funds for the project.

• The committee is set to present a report on the subject within 3 weeks.

Supreme Court Deems Construction of Dams Vital for Pakistan

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Location:

The project is located on Indus River, about 315 km upstream of Tarbela Dam, 165 km downstream of the

Northern Areas Capital Gilgit and 40 km downstream of Chilas.

Diamir Bhasha Dam

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Diamir Bhasha Dam

Location Cont..

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• This will be a Roller Compacted Concrete (RCC) Dam

• Height of the Dam will be 272m

• Gross storage capacity is expected to be 8.1 MAF (Million Acre Feet)

• Live storage capacity will be around 6.1 MAF

• Gross power generation capacity is estimated at 4,500MW

• Expected completion time is 14 years

• Estimated cost of the project is USD 15bn

Diamir Bhasha Dam

Salient Features

Diamir Bhasha Dam – Snapshot

Dam Type Roller Compacted Concrete (RCC)

Height of Dam 272 m

Gross Storage Capacity 8.1 MAF

Live Storage Capacity 6.4 MAF

Power Generation 4,500 MW

Execution by WAPDA

Expected Completion 14 years

Estimated Cost (USD) 15bn

Source: WAPDA and AHL Research

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Status• Land acquisition in progress (initial stages)

Funding

• Government has previously negotiated the funding of Diamir Basha Dam with World Bank

• World Bank has two funds to finance development projects including:

1. International Development Agency (IDA)

2. International Bank for Reconstruction and Development (IBRD)

• The share of Pakistan in IDA fund is around USD 500mn

• While the funding from IBRD requires a certain criteria of federal foreign exchange reserves

• To recall, Pakistan had obtained USD 500mn each from IDA and IBRD for Tarbela 4th extension project

• Pakistan faces challenges with respect to obtaining financing for Diamir Basha Dam amid its location in Gilgit

Baltistan along with depleting foreign exchange reserves

• Government has allocated PKR 24bn during FY18-19 for the acquisition of land

• Whereas the Government of Pakistan is also negotiating with China regarding the financing of the project

Diamir Bhasha Dam

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Key Challenges

• Area of the dam would form part of both KPK (Kohistan) and Gilgit Baltistan which would lead towards differences

between the province and administrative territory with land ownership being a major hurdle

• In particular, it would not be an easy task to move heavy machinery in an area like Gilgit Baltistan

• Financing of the project from World Bank / Asia Development Bank and other donors is difficult amid location

Impact on the Economy and Sectors

• The project would create cement demand of ~5.0mn tons (over a span of 10 years) or 0.5mn tons per annum, which

is around 2% of the annual North demand

• Likewise, the steel consumption is expected at 1.4mn over 10 years or (0.14mn per annum) which is 4% of annual

rebar demand

• This will also create thousands of jobs for both skilled and un-skilled workers over the duration of the project

• It is expected to add 4,500MW (15% of current capacity) of clean and cheap electricity to the national grid

Diamir Bhasha Dam

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Location:Construction of this project is proposed at the Swat River about 5 km upstream Munda Head Works in Mohmand AgencyFATA, Khyber Pakhtunkhwa

Mohmand Dam

Overview

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• Mohmand Dam was previously referred to as Munda Dam

• Height of the Dam will be 213m

• Gross storage capacity is expected to be 1.2 MAF

• Live storage capacity is around 0.6 MAF

• Gross power generation capacity will be 800MW

• Expected completion time is 6 years

• Estimated cost of the project is USD 2.6bn

Mohmand Dam

Salient Features

Mohmand Dam – Snapshot

Dam Type Concrete Faced Rock fill

Height of Dam 213 m

Storage Capacity 1.293 MAF

Live Storage Capacity 0.676 MAF

CCA 16,737 Acres

Power Generation 800 MW

Execution by WAPDA

Expected Completion 6 years

Estimated Cost (USD) 2.6bn

Source: WAPDA and AHL Research

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Status• Land acquisition in progress (initial stages)

Funding

• Negotiation with International and local donors along with WAPDA’s internal cash flow generation

• Allocation of PKR 2bn during FY18-19 for the acquisition of land

Key Challenges

• The area of Mohmand Agency FATA requires major upgradation of road network and setting up of base camp

• Difficult to mobilize heavy machinery

• Financing of the project

Mohmand Dam

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Impact on the Economy and Sector

• The project would create cement demand of ~1.5mn tons over span of 6 years or 0.25mn tons per annum, which is

around 1% of North region annual demand

• Likewise, the consumption of steel is expected at 0.34mn over 6 years or 0.05mn tons per annum, which is 1% of

annual rebar demand

• Employment opportunities in FATA region

• It is expected to add 800MW (3% of current capacity) of clean and cheap electricity to the national grid

Mohmand Dam

Disclaimer

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Analyst Certification: The research analyst(s) is (are) principally responsible for preparation of this report. The views expressed in this research report accurately reflect the personal views of the analyst(s)

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Disclaimer

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