Home »Budgets » Suggestions » Budget-2017-18: MoWP proposes Rs 168.364 billion for power development projects

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  • Apr 27th, 2017
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Ministry of Water and Power has proposed Rs 168.364 billion including Rs 87.362 billion local component and Rs 81 billion foreign loan component for power development projects for forthcoming federal budget-2017-18. According to documents available with Business Recorder, the Ministry has proposed an amount of Rs 166.3 billion including Rs 80.63 billion foreign loan component for 10 ongoing hydro power projects for Public Sector Development Programme (PSDP) -2017-18.

Ministry of Water and Power has proposed the following projects: (i) Rs 69.775 billion including Rs 50.28 billion local component and Rs 19.5 billion foreign component for Dasu Hydro Power Project (Stage-I 2160 MW) project, (ii) Rs 12.46 billion including Rs 3.85 billion local component and Rs 8.61 billion foreign component for Golen Gol Hydro Power Project (106 MW), (iii) Rs 6.13 billion including Rs 1.53 billion local component and Rs 4.6 billion foreign component for Keyal Khwar Hydro Power Project (128 MW), (iv) Rs 29.9 billion including Rs 10.46 billion local component and Rs 19.43 billion foreign component for Tarbela 4th Extension Hydro Power Project (1410 MW) (v) Rs 8.91 billion including Rs 1.6 billion local component and Rs 7.3 billion foreign component for Tarbela 5th Extension Hydro Power Project, (vi) Rs 108 million including Rs 27 million local component and Rs 81 million foreign component for Chitral Hydropower Station Capacity Enhancement from 1 MW to 5 MW, (vii) Rs 7.97 billion including Rs 2.68 billion local component and Rs 5.3 billion foreign component for Mangla Power Station Refurbishment and Up-gradation of Generation Units (310 MW), (viii) Rs 291 million including Rs 68 million local component and Rs 223 million foreign component for Mangla Hydropower Training Institute, (ix) Rs 2.64 billion including Rs 445 million local component and Rs 2.2 billion for Warsak Hydroelectric Power Station 2nd Rehabilitation (242.96 MW) and (x) Rs 28.14 billion including Rs 14.74 billion local component and Rs 13.4 billion foreign component for Neelim Jhelum Hydro Power Project (969 MW).

The documents further reveal that under the instruction of the government, PC-I of Diamer Bhasha Dam is under process of approval after re-arrangement as Dam Part Project (to be supervised by WAPDA Water Wing) and Power Generation facility (to be supervised by Wapda Power Wing) separately. Therefore, PSDP budget of Bhasha Dam Part (PC-I) is included in Water Sector PSDP for financial year 2017-18. Whereas PSDP budget of Bhasha Dam Power Generation Facility (PC-I) for financial year 2017-18 is not submitted as its work activities will start after two years.

However, according to sources the government is considering allocating funds from its own sources for Diamer Bhasha Dam in the next financial year. The international donor agencies have already refused to provide any loan for this project. The PSDP for financial year 2016-17 has been revised and now amounts to Rs 198.262 billion (Local component Rs 78.12 billion + Foreign Loan Component Rs 120.15 billion) for Power Sector Development Programme. Out of this revised allocation, WAPDA has proposed Annual Development Plan (ADP) (financing by government) amounting to Rs 14 billion only for Diamer Bhasha Dam Land Acquisition Project.

If revised estimates 2016-17 are compared with the approved budget then there is an overall increase of Rs 34.9 billion. The major increase is due to addition of Rs 3.367 billion in Golan Gol Hydro Power Project, Rs 10.58 billion in Tarbela 4th extension Hydro Power Project and Rs 38.969 billion in Neelum Jhelum hydro Power Project. However, there is also a reduction of budget of Rs 14.26 billion in Diamer Bhasha Dam Project (Lot 1-5) and slight increase/decrease in other different projects.

An additional demand of Rs 3.37 billion in Golan Gol Hydro Power Project is attributed to an increase of foreign loan of Rs 2.86 billion and an increase Rs 512 million in local component. The increase is mainly required for payment of Civil & E&M works which is in full swing. Rs 10.581 billion additional demand for Tarbela 4th Extension Hydro Power Project is due to an increase of foreign loan of Rs 13.5 billion and decrease of Rs 2.9 billion in local component; this increase is mainly required for payment of Civil & E&M works for early completion of the project.

There is an increase of Rs 38.97 billion in Neelum Jhelum Hydro Power Project which is due to an increase in foreign loan of Rs 65.8 billion and decrease Rs 26.83 billion in local component. Budget of Rs 306 million of Tarbela 5th extension and Rs 30.134 million of glacier monitoring networks are also provided in the revised estimates.



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