Wapda is all set to achieve the land mark of Indus River diversion at Diamer-Bhasha Dam Project next week by plugging the upstream coffer dam.
River Indus will, then, be flowing completely through the diversion system, bypassing the main dam site and rejoining its natural course after about a distance of 800 meters.
Diamer-Bhasha Dam Project is being constructed on River Indus, 40-Km downstream of Chilas town. This mega multipurpose project is scheduled for completion in 2028.
The Pakistani Government is embarking on an innovative financing strategy to fund the Diamer-Bhasha Dam by offering equity stakes in the Ghazi Barotha Hydropower Project (GBHPP). This strategic move reported recently, is poised to generate millions of USD for the critical dam project.
According to official sources, approximately 30% of the equity stake in the Ghazi Barotha Hydropower Project is slated to be made available for financing the Diamer-Bhasha Dam, with an estimated value ranging from USD 700-800 million. The Chief of Army Staff (COAS) has been apprised of this significant initiative and has directed the Special Investment Facilitation Council (SIFC) to initiate consultations with various stakeholders.
Reports indicate that the equity will be divested profit-sharing, targeting potential investors from friendly nations over a 10-year period. The Water Resources Federal Minister presented the proposal to the COAS, who approved and instructed the SIFC to engage in discussions with key entities, including the Power Division, Finance Division, and NEPRA.
The Ghazi Barotha Hydropower Project, boasting a robust capacity of 1,450 MW, plays a pivotal role in Pakistan’s energy landscape by consistently generating an average of 800 MW annually. The government’s strategic vision involves selling 30% of the hydroelectric generation directly to the export industry through the Competitive Trading Bilateral Contract Market (CTBCM) model. This forward-looking approach aims to lower export industry tariffs while boosting the nation’s exports.
The Water Resources Ministry currently prices the energy at PKR 1.25 per unit. However, there is a concerted effort to persuade NEPRA to raise the tariff to PKR 10 per unit as the baseline for the 30% generation from the Ghazi Barotha project. This adjustment is expected to make the project more appealing to potential investors from friendly nations such as Qatar, Kuwait, the UAE, and Saudi Arabia.
This innovative financing strategy underscores Pakistan’s commitment to addressing its energy needs and infrastructure development through creative approaches. By leveraging the equity of the Ghazi Barotha Hydropower Project, the government aims not only to secure funding for the Diamer-Bhasha Dam but also to bolster its energy sector and enhance its standing in the international arena by engaging with friendly nations in mutually beneficial partnerships. It’s a visionary step that promises Pakistan sustainable development and economic growth.