Islamabad - The government has increased the allocations for Diamer-Basha dam in the PSDP 2019-20 by almost Rs 39 billion, sources revealed on Thursday.

The planning commission, on the directives of the federal government, had asked the ministries and divisions to identify un-utilised amount from the projects in their domain and now Rs 39.311 billion has been diverted towards Diamir-Basha dam, official sources told The Nation. This amount is ready for release and as soon the planning commission receives the request for release the funds it will be made available. The government wants to fast-track work on Diamer-Basha and is making all-out effort to arrange funds for the project.

In the original PSDP 2019-20 the allocation for Diamer-Basha dam was Rs 20 billion, which included Rs 16 billion for the dam part and Rs 4 billion for the Land Acquisition & Resettlement.

For the dam part the allocation has been increased by almost 23.09 billion to Rs 39.09 billion from the earlier Rs 16 billion, while for the Land Acquisition & Resettlement it has been increased by almost Rs 16.212 billion to Rs 20.212 billion from the ealier Rs 4 billion.

The total estimated cost of the project is about Rs1.407trillion

In the past 11 months authorization for the release of Rs 16 billion has been issued while for the Land Acquisition & Resettlement a release of Rs 10.4 billion has been authorized by the planning commission    Earlier this month the government had awarded the contract worth Rs 442 billion for the construction of  Diamir Bhasha dam to a Joint Venture namely Power China-FWO

Diamer Basha Dam Project, with a total financial outlay of about Rs. 1406.5 billion will be completed in 2028. The total financial outlay includes land acquisition and resettlement, confidence building measures for social uplift of the locals, construction of dam and power houses. The project has a gross storage capacity of 8.1million acre feet (MAF) and power generation capacity of 4500 megawatt (MW), with annual generation of 18.1 billion units per annum.

The total estimated cost of the project (dam portion and power house) was about Rs1.407trillion. The cost of power generation facility was estimated at Rs751bn but that would be required at a later stage.

The government would meet about 30 percent or Rs 406 billion share of the total project cost while the remaining Rs 997 billion or 70 percent would be arranged by Wapda through Rs 100 billion equity besides commercial financing and issuance of Eurobonds etc.