MWH, a global provider of environmental engineering, strategic consulting and construction services, today announced that it was selected by the Pakistan Water and Power Development Authority (WAPDA) to provide engineering and construction management services for the Neelum-Jhelum Hydroelectric Project. The project is expected to add 963MW power generating capacity at a cost US $2.2 billion, according to Business Wire. MWH is a US firm based in Broomfield, Colorado.
This hydroelectric project, first formally announced by former Minister Omar Ayub on June 10, 2007, is finally starting in earnest under the PPP government of Prime Minister Yousaf Raza Gilani. Prior to this project, the new Pakistani Prime Minister signed a deal with a Chinese company, Dong Fong, for setting up 525 MW thermal power plant with an investment of $450 million at Chichoki Mallian (Sheikhupura). Both of these projects are expected help partially close the 3000 MW gap that exists today between supply and demand in Pakistan.
The Joint Venture, Neelum-Jhelum Consultants, lead by MWH and consisting of MWH, Pakistani firms NESPAK, ACE and NDC, and Norwegian firm NORPLAN, will provide design, construction drawing preparation and construction management services for the next eight years.
Located in the Muzaffarabad District in the state of Azad Jammu Kashmir, approximately 85 miles (138 kilometers) from Islamabad, Pakistan, the Neelum-Jhelum project is one of several major projects planned to increase Pakistan's hydroelectric generation capabilities to meet the growing energy needs of the country. The project is part of the Pakistani government's "Vision 2025 Program," envisaged to improve energy development in the country. In addition, Neelum-Jhelum is a priority project in Pakistan's Indus Basic Water Treaty with India. This project has been in the works for eight years but delayed due to various problems including the land acquisition costs in Azad Kashmir. Any further delays would jeopardize Pakistan's right to the water from Neelum river (Called Ganga in India) under the Treaty with India.
In the late 1960s, MWH helped to develop and implement Pakistan's Indus Basin Project. It was the result of a treaty between Pakistan and India, which ended a long and bitter dispute between the two countries over the use of water from the Indus River and its five tributaries. The first large dam built as part of the Indus Basin Project was the Mangla Dam, completed in 1968. An essential part of the project is the MWH -- designed spillway for a 1.1 million cubic feet per second discharge. The company provides water, wastewater, energy, natural resource, program management, consulting and construction services to industrial, municipal and government clients in the Americas, Europe, Middle East, India, Asia and the Pacific Rim.
Both power and water projects are crucial for Pakistan's economy in the intermediate and long term. The challenge for the Pakistani government is to make up for the neglect of several years in the power and water sector. It means that the government must ensure that the water and power projects get started and stay on schedule to begin to address the growing shortage of water and electricity in Pakistan.
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Here's a recent Daily Times report about Bhasha Dam in Pakistan:
ISLAMABAD: Deputy Chairman Planning Commission, Sardar Asef Ahmad Ali on Thursday said some changes had been made in Bhasha Dam project, particularly in its power component. In an exclusive interview with Daily Times he said the power component of Bhasha Dam would be run on Public Private Partnership basis so that burden on the government kitty might be reduced. In this regard he said that a ‘Company’ would be established, which would be converted into an international consortium. The consortium would be able to get equity as well as funds from the International Financial Institutions (IFI), Kuwait Funds and others.
Once the Company is established, he said that there would be no problems for funding, as it would be able to borrow from the market and repay the loan. “The government has assigned me to structure the Company,” the Deputy Chairman said and added that he would invite all power distribution companies including KESC to purchase its shares. The government and WAPDA might also purchase its share and later, expatriates would also be offered shares in it. In this manner, it would enjoy the status of an International Company. Its marketing plan would be carried out at world-class top companies and arrangements would be made to conduct internationals show for it. In this way, all requirements for making it an ‘Equity’ would be fulfilled, he added. All these measures have been carried out for the first time in Pakistan.
About PSDP (Public Sector Development Programme) he said that as a routine, the government releases 19 to 20 percent developmental funds in first quarter of the current fiscal year (July-September 2009). Reason for low allocation was the slow process of revenue generation through new measures adopted in the annual budget. PSDP releases for second quarter (Oct to Dec 2009) was already in progress. If the funds are released in time, he expressed hope that the government would be able to achieve its targets. At present, he said there was no indication by the ministry of finance regarding cut in PSDP 2009-10.
Currently the country’s revenue generation remained stagnant at 8.5 percent of the GDP, which he termed as lowest in the world. The government wanted to increase it to the level of 11 percent of the GDP. “Finance Minister Shaukat Tareen informed me that the government identified 2 million new taxpayers in the existing system and if it remains successful, then the PSDP will be remain as it is”, he maintained.
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