ISLAMABAD - To meet electricity requirements of the Diamer Bhasha Hydro Project (DBHP) during construction, the government is planning to construct 15 MW Tangir Hydropower Project in Gilgit Baltistan which will increase the cost of the project by Rs6 billion.
The proposal will be submitted to the upcoming elected government and if they approved it the cost of Diamer Bhasha Dam component will increase from the ECNEC approved cost of Rs474 billion to Rs480 billion, official source told The Nation here Tuesday.
According the official documents earlier it was decided that the position paper regarding inclusion of 15 MW Tangir Hydropower Project into Diamer Bhasha Dam Project will be processed by the Ministry of Water Resources.
However Ministry of Water Resources verbally requested that Ministry of PD&R may process it through CDWP/ECNEC.
The proposal to construct Tangir Hydropower Project will increase the cost of Diamer Bhasha Dam Project from Rs474 billion to Rs480 billion.
The project will be completed in June 2027 and the cost will be shared by the Federal government, Wapda equity and commercial borrowing.
The Federal government will provide Rs 234 billion (49 percent) through PSDP, Wapda equity Rs100 billion (21percent) and Commercial Borrowing Rs146 billion (30percent).
As per the detail the project was considered by the ECNEC in its meeting held on 17th April, 2018 and instead of PC-I cost of Rs649 billion approved the project at a rationalized cost of Rs474 billion including FEC of Rs154 billion.
The prime minister also constituted a committee comprising Secretary, Ministry of Planning Development and Reform (Chairman), Secretary, Water Resources Division and Chairman, Wapda to reconsider the excluded components of the Pc-I, and to formally close the previous PC-I after fully verifying the expenditure incurred under it so as to ensure that there is no overlap in the new PC-I.
In compliance to ECNEC decision a meeting of the committee was held under the Chairmanship of Secretary, Ministry of PD&R on 12th July, 2018 which was also attended by the Chief Secretary, Gilgit Baltistan, Joint Secretary, Ministry of Water Resources Member Energy, Planning Commission, Sr. Chief (Tech) and Chief (Power) Ministry of PD&R.
Adviser (Projects) Wapda briefed about the importance of 15 MW Tangir Hydropower Project and explained that Tangir Hydropower Project shall be cheap renewable energy source which shall be used during construction of Bhasha Dam.
Joint Secretary Ministry of Water Resources, Member Energy and Chief Energy, Ministry of PD&R confirmed that Tangir Hydropower Project would be more cost effective than all other provisions.
He said that after completion of Diamer Bhasha Dam Project it shall be handed over to GB administration to meet the energy demand of locals. This will also serve as confidence building measures.
Chief Secretary Gilgit Baltistan was of the view that implementation of Tangir Hydropower Project will boost the trust of locals on DBDP and after construction of the dam, Tangir Hydropower Project will be utilized for local area consumption.
