|Hydroelectric Power Potential in South Asia Source: Economist Magazine|
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.
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.
ADB assures to consider financing for Bhasha Dam,reports Daily Times:
Asian Development Bank (ADB) is considering various options in a positive direction to finance multi-billion dollars Diamer Basha dam project.
This was stated by ADB Director General Jaun Miranda, while talking to the Federal Minister for Water and Power, Syed Naveed Qamar here today. A three-member ADB delegation called on him here on Friday.
The ADB also agreed to provide counter guarantees to the investors for investing in the wind power generation projects in Pakistan, he assured the meeting. The wind power generation projects will generate cheaper electricity in the country. Miranda said that the bank is already providing financial assistance for power distribution enhancement project and will continue its support for the project in order to improve the energy efficiency. Transmission and distribution system and energy loss reduction programme are also being funded by ADB for all distribution companies (Discos). He said that the bank is ready to expand its funding for replacement of all obsolete distribution network. The bank will provide financial assistance for free distribution of 30 million energy saver bulbs in the country. These energy savers will help reducing peak hours demand over 1000 Megawatts. He also said that the bank would fully support the energy conservation initiatives of the government.
The Minister for Water and Power appreciated the role of the ADB for improvement in energy sector and said that the support of the bank for energy efficiency programme will help save energy and reduction in the transmission and distribution losses. The Minister also thanked for providing counter guarantee facility for wind power projects. The Minister also briefed the delegation regarding new energy sector improvement initiatives like operation and maintenance contract of generation companies through private sector and conversion of existing independent power producers to cheaper fuels. He also asked the ADB to finance mega-water and power sector projects to end the crises in these sectors.
The ADB director also discussed current status of power sector reforms, energy efficiency programmes, central power purchasing agency, independence of Discos. The Minister also assured that all efforts would be made to timely complete the existing projects being funded by ADB.
Here's a Business Recorder news report on delays in Neelum-Jhelum construction project:
The pace of work on the important Neelum Jhelum hydroelectric project is very slow, as only 22 per cent work has been completed so far against the targeted 50 per cent. The detailed feasibility study of the 969 MW project was completed in 1997 and the revised Project Cost-I (PC-I) was approved by Executive Committee of the National Economic Council (Ecnec) on February 28, 2002 at a total cost of Rs 84502.26 million.
The work on the project was started in January 2008 and October 2015 was fixed as completion date. By 2011, about 50 per cent work was to be completed, however, only 22 per cent work has been completed so far, making it difficult the project would be completed on time, sources told Business Recorder.
Subsequent to the 2005 earthquake the PC-1 was revised again, which also affected the cost of the project and its completion period. They said after passage of almost half period of the project only 22 per cent work has been completed, which shows slow pace of work on the project.
Sources further revealed that till June 30, 2010, a sum of Rs 16897.243 was spent on the construction of the dam. In 2010-11's Public Sector Development Programme, Rs 14700 million were allocated and only Rs 3953.244 million have been spent so far. While a total amount of Rs 20850.487 million has been spent on the project so far.
Total required land for the project is 3400 Kanals and land awarded to Wapda is 3300 Kanals with another 100 Kanals required for which land acquisition process is underway. In addition there is an issue of transfer and possession of 26 Kanals that has not yet been handed over by the AJ&K government which is also causing delay in completion of the project.
Source maintained that if the project was not completed on time, the total cost of the project could increase as the cost of raw materials was increasing day by day. They added if the government was serious about resolving the electricity shortages then it should take appropriate measures to ensure timely completion of the project.
Here's Express Tribune report on ADB financing of Bhasha dam:
Pakistan and the Asian Development Bank (ADB) have agreed to sign a memorandum of understanding (MoU) for technical and financial cooperation in the construction of multi-billion-dollar Diamer-Bhasha Dam.
The MoU will be inked next week, said the Ministry of Water and Power after a meeting between Water and Power Minister Naveed Qamar and the Manila-based lending agency’s Director of Energy Wing Rune Stroem on Friday.
Stroem is leading a delegation to assess detailed engineering design of the dam, which will store 8.5 million acre feet of water for irrigation purposes and generate 4,500 megawatts of electricity.
The delegation, the first formal mission on Diamer-Bhasha Dam, will also review the cost component and consider options to make it a bankable project, as the ADB alone cannot finance the full cost estimated at $11.2 billion.
The government and the ADB also agreed to organise roadshows in three different countries with the assistance of international lenders, equipment suppliers and others concerned for seeking co-financiers for the project, said the water and power ministry.
An official of the Economic Affairs Division said the ADB has not yet formally conveyed the exact size of the loan but there are indications that the agency may extend up to $4.5 billion that will meet 40 per cent of financing needs.
After a refusal in 2008, the World Bank also recently expressed its willingness to finance the project, said the official. The US has also committed to financing the project under the Kerry-Lugar Act, but it also has not given the exact size of its share in the financing.
Stroem said the mission was giving highest priority to Diamer-Bhasha Dam and looking for its early execution. Praising the progress made so far on the project and the efforts to resolve related matters, he said the project would help improve socio-economic life of people and bring prosperity in the country.
Naveed Qamar said the ADB’s role as lead financier of the project would help attract other donors and sponsors to fund mega projects in Pakistan. He said the project would be a milestone for the country’s economy and meet water and power needs.
The government is attaching high priority to the project and has completed all formalities for its construction, hinting at its approval at the Council of Common Interests, the highest constitutional body on inter-provincial matters.
Qamar said most of the land for the project had been acquired and the resettlement package was being implemented. The ADB mission also discussed the energy efficiency programme and matters relating to other mega water and power projects being executed by the government with the cooperation of the bank.
Stroem said the bank was also considering various other projects for financial and technical assistance in the water and power sector.
Matters relating to power sector reforms and rehabilitation of electricity generation companies were also discussed. The mission was told that rehabilitation of power companies was under way, which would be completed at the earliest.
ADB asks Pakistan to tie all loose ends to proceed with Bhasha dam construction, according to Daily Times:
The Asian Development Bank (ADB), the lead financer of the Diamer-Bhasha Dam on Tuesday suggested Pakistan to focus on resolution of revenue sharing issue between Khyber Pakhtunkhwa (KP) and Gilgit Baltistan (GB) as well as affected population and address issues of environment degradation for smooth execution of the mega project.
ADB’s Head of Energy Division Rune Stroem while speaking to a select group of journalists along with the ADB’s Country Director to Pakistan Werner Liepach after conclusion of his visit to Pakistan aimed at ‘critically reviewing the mega project’. He said, “ADB is fully aware that there will be strong debate on revenue sharing and ADB can give advice but at the end the issue will have to be decided by the Council of Common Interests.” The KP government is disputing over the ownership of 18 kilometres long belt with GB government in a bid to get share in income from the power generation. The GB legislative assembly has passed the resolution against the provincial government claim and intends to take the matter to the Supreme Court if it is not amicably resolved.
“Pakistan has not been focusing on social aspects of the project as much as one could hope,” Stroem said and added that the success of the project hangs on local people satisfaction with resettlement activities. “The resettlement work has been done but still there are gaps where the government needs to bring in improvement as per international standards,” he added.
Explaining the gaps, Stroem said individual activities were going on at relatively small scale and lots of pilot projects have been initiated. He said the legal dispute over sharing of revenues between GB and KP has to be worked through and on environment no sufficient work has been done yet.
Stroem said there was a need to ensure minimum water flows during storage to offset negative impact on the environment. He said no water flows at the time of construction and storage will have adverse affects.
Having an estimated cost of $11.20 billion the project is planned to be completed in 12 years that will generate 4,500 megawatts (MW) electricity besides storing 8.5 million acres feet water for agriculture purposes. The project’s groundbreaking has been performed twice. The ADB official said that the agency has not yet fully assessed the price and completion period but the total cost may change due to price escalation.
Stroem said that an unwritten agreement has been reached with the government. According to that the ADB will play its role as senior lender, co-financer and will be the financial adviser to Pakistan on the project. He said next week both the parties will review the draft of the Memorandum of Understanding that clearly defines the role of the ADB in project execution.
He said the project can’t be donor-driven instead the government is the primary driver and it’s cognizant of the fact. The ADB was helping the government to structure the project and make it bankable. “It is the most complex and the most comprehensive project the ADB has ever financed.”
Liepach said that the ADB has not yet framed clear views on the dam financing requirements but the export credit will be major source of financing. Other than the export credit the international financial institutions and commercial financing would also be availed to complete the project, he added. Stroem said the Water and Power Development Authority will evaluate the bids for the project but the ADB will also review to ensure transparency. The ADB has strong anti-corruption policies and the agency’s involvement will give more credit to the project, he added.
Here are some promises by WAPDA as reported in The News:
“WAPDA is also working on projects that will generate 35,500 MW of hydroelectricity including 22,800 MW run of the river projects,” WAPDA Chairman Sahkeel Durrani said.
“We are committed to ensure that Pakistan takes full advantage of its hydroelectricity production potential,” he said.
The first unit of 96 MW hydropower project at Jinnah Barrage has already been commissioned and it would start operating on full capacity by the end of this year, he said.
Durrani said that the 121 MW Allai Khwar project at Battagram is almost complete and would start generating power within few months.
“Duber Khwar - a 130 MW hydroelectric project at Kohistan, is scheduled to generate full power by December 2012,” he added. In addition Satpara Dam is generating 17.36 MW of hydroelectricity.
The 72 MW Khan Khwar hydropower project in 2011 is already generating its installed capacity, Durrani said.
“This is a humble contribution of WAPDA to reduce the gap between demand and supply of electricity,” he said.
Work on high capacity hydroelectricity projects is in full swing. He said the feasibility study and detailed engineering and design of 7,100 MW Bunji project in Gilgit Baltistan has been completed and is currently under review of WAPDA experts.
He said feasibility study of Dasu Dam in Khyber Pakhtunkwa has been completed. This dam he added would store 1.15 million acres of water and produce 4320 MW hydro electricity. “Consultants for preparation of detailed design and tender documents have been mobilized,” he added.
“Hydroelectric power projects having the potential to recover cost in short time are darlings of world donor agencies,” he said. Finances for such projects are available with much ease than other power projects.
There are 17 run of the river power generation sites that have been identified by WAPDA experts and work on the feasibility studies on most of them have been initiated.
These include some high power potential projects like 2100 MW Tungas, 2800 MW Yulbo at Sakurdu, 2800 MW Thakott at Besham and 2800 Patan at Patan.
He expressed confidence that the speed of work at Neelum Jehlum Hydroelectric Project would accelerate as the high tech tunnel boring machines have arrived at site. He said this would help WAPDA to complete the 969 MW power project on schedule in 2016.
Durrani said the 496 MW Lower Spat Gah; 665 MW Lower Palas Valley; and 600 MW Mahl; run of the river projects would be completed under Public Private Partnership. He hoped that the private sector would come forwards to grab this lucrative opportunity.
Chairman Water and Power Development Authority hoped that resources for 896 MW Tarbela (extension) and 1401 MW Munda Dam would be soon mobilized. Munda with a storage capacity of 1.3 million acres feet (MAF) would also act as buffer against floods in Khyber Pakhtumkhwa.
He said Mangla raising would add 2.88 MAF of water in the reservoirs. He said 34 MAF additional water storage would be available after completion of Munda Dam, Dasu Dam, Gomasl Zam Dam and Satpara Dam. He said Diamer Basha and Khurram Tungi Dam - both of which are ready for construction would add 9.3 MAF in water reservoirs.
He said the current water storage capacity in the country is 11.91 MAF after depletion of 4.37 MAF due to silting in the existing dams.
Here's a News story on financing of the Neelum-Jhelum project:
ISLAMABAD: Pakistan desperately needs $704 million to complete the strategic Neelum-Jehlum hydropower project on time as the current available capital is only enough for four to five months, sources in the ministry of water and power told The News.
“The cost of the project has swelled to over Rs333 billion for which the Planning Commission is evaluating the revised PC-1 of the project which will be given approval by Executive Committee of National Economic Council (Ecnec),” a senior official, who is directly involved in the project, said.
“Pakistan needs a credit line at any cost to maintain the ongoing pace of construction of the project, otherwise project would get delayed,” the official added.
If the project is not completed on time by 2016, India would find itself in a better position to first complete the Kishan-Ganga hydropower project on the Neelum River in the held Kashmir.
Under the Water Treaty, the country which completes the project first on Neelum river will have the first water priority rights. Pakistan is already in a legal battle at the International Court of Arbitration in Hague against India over faulty design of the Indian project.
Keeping in view the strategic emergency of the project, the official said, Pakistan needs $704 million and in this regard the government is under dialogue with various donor countries.
“China has already committed $483 million loan, but it has delayed the disbursement of the credit line,” the official said and added that the Prime Minister Syed Yousaf Raza Gillani is scheduled to visit Beijing some time this month and top priority of the agenda of the premier is to ensure the credit line from the EXIM Bank of China.
“Similarly, Islamic Development Bank has also committed $326 million for the project and the authorities in Pakistan are seeking additional $255 million.”
Moreover, the Saudi Development Fund has also committed $80 million but authorities are asking them to increase the credit line to up to $230 million, the official said. However, negotiations to this effect between Pakistan and Saudi Arab are underway. The UAE has also committed $100 million. The OPEC Fund has also indicated to extend $31 million which may go up to $80 million.
Here's a Nation story on China approving $450 billion loan for Neelum-Jhelum dam project:
Chinese EXIM Bank, after a long delay, has now approved $450 million loan to finance 969MW Neelum Jhelum hydropower project, which would add about 5.15 billion units of cheap electricity to the national grid every year by 2016.Well-placed official sources informed TheNation that Chinese EXIM Bank after a long delay has now approved $450 million loan to finance the Neelum Jhelum hydropower project located near Muzaffarabad adding that the Economic Affair Division (EAD) has also gotten an approval from the Chinese bank in this regard. They told that the Neelum-Jhelum hydropower project needed $700 million foreign funding to complete the project by 2016. The major financiers of the project include the Kuwait Fund, the Export Import Bank of China, the government of the UAE and the Saudi Fund for Development. Sources further told that project had originally been budgeted to cost Rs130 billion, but costs had witnessed skyrocketed rise by 154per cent to Rs330 billion. In the revised plan submitted by the water and power ministry, the main reason for the spike in costs was attributed to a change in design, but a detailed examination of the figures has shown that primary cause for the increase was delay in completion. Sources further told that more than 30per cent of the work on the project had been completed. The project would earn about Rs45 billion in revenues annually and would therefore be able to recover its cost of construction within seven years.It is also learnt that as the Chinese EXIM bank found hesitant to release the worthy amount since 2009 resultantly the delay for unknown reasons had caused the cost of the project to rise to Rs330 billion ($3.7 billion). It was also feared that the pace of construction might slowdown providing an edge to India, which had been building Kishanganga project on the same Neelum River on its side of Kashmir because if Pakistan failed to complete its project before India, then it might lose the water rights to the upper riparian country. Further, according to Indus Water Treaty (IWT), the country that first completes its project on Neelum tributary will have the priority rights on the water of Neelum River. Furthermore, the Neelum Jhelum Hydropower Project Company (NJHPC), a wholly owned subsidiary of the Water and Power Development Authority was set up to manage this very project.It is to be noted here that the top man of China had committed this loan during the visit of President Asif Ali Zardari to Beijing in 2009 but the Chinese Exim bank did not entrain Pakistan although three years have elapsed since the commitment of China to Pakistan resultantly the country was in contact with Islamic Development Bank, Saudi Development Bank, Abu Dhabi Fund, Kuwait Fund for the required finding. Even IDB had committed $200 million, Saudi Fund $337 million, Abu Dhabi Fund $100 million and Kuwait Fund $30 million and the government was pursing the said donors to expedite the disbursement of their credit line for the timely completion of the project.Waqar Masood Secretary Economic Affairs Division while confirming the information pertaining the receiving of approval worth of $450 million loan to help finance the 969-megawatt Neelum Jhelum hydropower project. He also informed that documentation process in this regard would take one month while disbursement of such a hefty amount is likely within one-month....
Here's UPI.com on Chinese help for energy projects in Pakistan:
Pakistan is suffering from chronic electricity shortages that are producing blackouts of up to 16 hours per day and negatively affecting the country's industry.
Seeking foreign assistance to alleviate the power shortages, Pakistani President Asif Ali Zardari has urged his government to assist hydroelectric electricity projects being developed in conjunction with China's Three Gorges Corp.
Zardari instructed government officials to intensify cooperation with the Three Gorges Corp. following a meeting with a Chinese delegation headed by China's Three Gorges Corp. Senior Vice President Wang Shaofeng, The Express Tribune reported Thursday.
Zardari's spokesman, Sen. Farhatullah Babar, said the projects being undertaken with assistance from Three Gorges Corp. could add roughly 2,500 megawatts of electricity into Pakistan's national grid system.
In addition to the approximately 1,950 megawatts generated by hydroelectricity, China's Three Gorges Corp. would assist Pakistan in producing the rest through wind and solar projects.
Here's Daily Times on Neelum-Jhelum dam progress:
The assembling of Tunnel Boring Machines (TBM) to dig mega tunnels according to international standards for 969 megawatts (MW) Neelum-Jhelum hydropower project is in process and will likely be operative during the first week of August 2012
Following international bidding, two German made TBMs costing Rs 8 billion had been installed on the project site Nauseri, Azad Jammu and Kashmir (AJK), where assembling of two giant mechanical milestones are under process and likely to be completed during last week of July and operative in the first week of August.
Speaking with Daily Times, Neelum-Jhelum Hydropower Company (NJHPC) CEO Lt Gen (r) Zubair Ahmed informed that with the help of TBMs, the early completion of 969 MW NJHP project could be possible and contribute in saving of Rs 67.5 billion revenue.
He said there is no truth in media reports that TBMs are not feasible for cutting mountains and could damage the entire project, adding that ‘project team had diverted river Neelum on October 2011, while 37.6 percent work on TBMs has been completed’.
He further said that after completion of 969 MW NJHP, more than 5.1 billion electricity unit would be generated, which will later be taken into the national grid at the point of Gakhar, Gujranwala, while the government would collect revenue of Rs 45 billion per year, adding ‘cost of per electricity unit generated from NJHP has been estimated Rs 2 per unit’.
This billion-dollar project was initiated in 2008 and estimated time of completion was announced 2015, however flood havoc completely destructed the whole infrastructure, and after the new design of NJHP, PC-1 cost was once again revised which increased its cost 135 times, which was approved by the Planning Commission on June 18 as Rs 274.822 billion new cost of this hydropower project.
Explaining the progress on Neelum water diversion tunnel, he said that more than 24 kilometres tunnel has been constructed out of total accumulated length 63 kms including entrance rage of tunnel through driller blast and other heavy mechanical equipment, however remaining part of tunnel would be completed soon as once TBMs would be operative. He also informed that the federal government has approved Rs 2.4 billion, which would be released soon and spent on construction of small projects including schools, model parks and health units for displaced persons from the site, while the land acquisition issue has also been resolved.
Out of 4,200 kanals of land, 3,850 kanals land has been acquired; however remaining land of 121.6 marlas is under litigation and would be resolved soon.
If Pakistan succeeded to commission NJHP before completion of controversial Indian hydropower project, it would not only grab water priority rights on the Neelum river, but also help Pakistan’s legal battle in the Permanent Court of Arbitration (PCA) at Hague against India on Kishanganga hydropower project as India is building it on the same river in held Kashmir with faulty design that negates the Indus Water Treaty. NJHP management was of the view that the completion of controversial Kishanganga could cause decrease in water inflow up to 14 percent in river Neelam, adding, ‘the country could face loss of $321 million annually, and agri-land of Muzaffarabad could be barren’. Public sector power managers ascertained that annual benefits of the project have been estimated at Rs 45 billion, adding that the project would payback its cost in about seven years.
Here's PakTribune on reduced hydel power in winter causing increased load shedding:
The current wave of load-shedding will end soon, as water flow in canals will come to normal levels in coming days and production of electricity will increase. The government is making all-out efforts to cope with the current situation and eliminate load-shedding.
The energy mix of the country consists of around 34% electricity generation from hydel resources and 66% from oil and gas. Reports show that hydropower production has dropped from 6,500 megawatts to 1,500MW these days.
Every year, canals are closed in winter for de-silting and the Indus River System Authority (Irsa) curtails water releases from major reservoirs of Mangla and Tarbela during December and January, leading to a sharp decline in hydropower production.
On the other hand, gas companies also cut supply in winter to those power producers, which have nine-month gas supply agreements, disrupting electricity production. Thus, the shortfall increases and the Ministry of Water and Power is left with no choice but to opt for power outages.
However, considering the scale of gas and water curtailment, the power supply has been managed very well. The ministry is mindful of providing maximum relief to people by resorting to load-shedding mostly during night and very less power cuts in day time so that routine life of people is not disturbed.
The canals are expected to be opened in the second week of January and production of hydropower will increase and outages will come down.
The ministry is also making alternative plans to cope with the power crisis as it is working to increase the generation capacity of existing power plants.
It is very important that the people should also come forward and help the government in conserving electricity, which could be done by saving power through all possible ways. This way, they will not only be helping the government, but will also reduce their electricity bills....
QUOTE: "General (R) Zubair Ahmad, CEO of Neelum Jhelum Hydropower Company, said if this was the decision of the Court of Arbitration, it would affect the viability of the Rs 270 billion Neelum Jhelum Hydropower Project and reduce the 10 percent electricity generation capacity resulting in the loss of 141.3 million dollar annually."
This shows two things--
(1) Low standards of Journalism:
"He said Kamal Majidullah was going to issue a statement telling that Pakistan had not lost the case rather it had won the case. Majidullah was contacted time and again but his cell phone was powered off."
(2) Even critical technical positions are assigned based on connections rather than qualifications:
"Many experts question Pakistan’s strategy in The Hague court and call it flawed. They say Kamal Majidulla was unknown to the international trans-boundary water issues. He has been a journalist and remained editor of an eveninger in Karachi. The only qualification he has is friendship with the top PPP leaders. He also successfully used his maneuvering skills to bag the job."
What is your view? Is this just another PPP mess? Would Musharraf/Army have won this case?
Here is KING SOLOMON writing in The Oman Tribune on the Neelum-Jhelum affair:
^^RH: "If the project is not completed on time by 2016, India would find itself in a better position to first complete the Kishan-Ganga hydropower project on the Neelum River in the held Kashmir.
Under the Water Treaty, the country which completes the project first on Neelum river will have the first water priority rights."
This is no longer true. Read the judgement here (pages 157-167 of Partial Award Report):
The "first one to finish" concept has been dismissed by the court as economically wasteful.
The "first one to announce" concept has also been dismissed by the court as inviting to frivolity.
The court has created a new concept as who gets priority, as you can read it the judgement. It defines a period (2 years typical) over which certain activities are performed on whose basis a project can get a "placeholder".
The court judged that India's acts gave it a place holder of 2004-2006 and that our place holder was at the earliest 2007-2008. Therefore, the court gave India priority. So now it does not matter who "finishes first". See Page 164 of Partial Award (above).
PS: The only reason for all the money they wasted on the Neelam-Jhelum project was because they thought it was a race with India. But now that the race is over, I am willing to bet they will lose interest and divert funding elsewhere. And our Neelum-Jhelum project will rot for another 15-20 years at least. What a waste....
Here's a news report on Pakistan's official position on Kishanganga arbitration results:
Islamabad: Downplaying the recent verdict by International Court of Arbitration upholding India's right to divert water from the Kishanganga hydro project, Pakistan said on Tuesday it was not a legal defeat for the country. Presidential spokesman Farhatullah Babar said that the arbitration award was not a legal defeat for Pakistan.
He said that Pakistan had put two questions of legal nature before the Court of Arbitration which were within its jurisdiction for determination. "The Court has given its conclusive determination on one question while on the second the final award will be given later in December".
The two questions, he said, were first whether India's proposed diversion of water from Kishanganga into another tributary breached the Indus Water Treaty and second if such a diversion was allowed whether there were limits on the quantum of water diversion.
Babar said that on the second question the Court categorically stated that the treaty did not permit reduction below dead storage of the water level in the reservoirs of run-of-river plants on the Western Rivers and India could not even flush water to such an extent that would deplete it dead storage level.
This condition applies not only at Kishanganga but for all future run-of-river hydroelectric plants according to the court award, he said.
He said this clear interpretation prohibiting India from depleting water below the dead storage level is a major relief for Pakistan as it protected the country's right to receive uninterrupted water supplies on the western rivers. "The uninterrupted flow, as much as the quantum, of water was critical for crops as delayed flows have seriously undermined crops in Pakistan due to late sowing," he said.
"The award had protected this right of Pakistan," Babar said.
Babar said that India has planned 150 run-of-river power plants on the western rivers of which 47 are above 50 MW's which made this particular decision very significant for Pakistan.
"Without such clear direction by the Court, the construction of these storage-oriented power plants by India, in the manner it has been seeking to build in the past, could have seriously undermined Pakistan's right of uninterrupted water flows from the western rivers," he said.
"Therefore while water may be diverted for power generation the power is to be constructed and operated in a manner that ensures a constant minimum flow of water in the Kanchenjunga/Vellum River".
He said that for determining of minimum flow regime the Court has asked both India and Pakistan to provide flow data and other details. A final award will be given later in December and in this context the decision was not yet conclusive, he said.
Here's a Hydroworld report on hydroelectric projects in Pakistan:
ISLAMABAD, March 20 -- Government would complete the Neelum Jhleum Hydro project, Golen Gol and Dubair Khawar hydro projects within the stipulated time frame and resolve the issues related to any project.
This assurance was given by the Secretary Water and Power, Sikander Ahmed Rai while chairing a meeting with visiting Joint Supervisory Mission (JSM) of lead financers of three hydro power projects here today.
The consortium includes representatives from Islamic Development Bank, Saudi Fund Development, Kuwait Fund Development and Opec. The meeting was also attended by additional Secretary Ministry of Water and Power, Chairman Wapda and senior officials of Neelum Jheluim project, Golen Gol and Dubair Khawar project and ministry of Water and Power.
Secretary water and Power said that the government has also allocated the funds for the projects and financial support of the donors would help to complete the project in time. He said that the progress on three projects being reviewed and monitored regularly. Pakistan is facing energy shortage and timely completion of these projects would help to bridge the gap between demand and supply. He also thanked the delegation for visiting Pakistan to review the progress of the projects.
Earlier, the Chairman Wapda briefed the JSM that KhanKhawar hydro project of 72 MW and Allai Khawar Projects of 122 MW have been completed. While the remaining three projectsw of 1205 MW would be completed as per their schedule. Dubair Khawar project would be completed by June this year. Neelum Jhelum Hydro project of 969 MW by 2016 and Golen Gol project of 106 MW would be completed by 2015. He also informed that the Government has recently approved Rs 24 billionfor for Neelum Jhelum Project. He said that 47 % work on tunnel boring has been completed on Neelum Jhelum project.
The JSM appreciated the progress on three projects and stated that the consortium of financers would continue its support for energy projects. The JSM would also visit the sites of all the three projects to review the progress
Here's a Nation newspaper report on German financing of hydel projects in Pakistan:
A delegation of the KfW Development Bank, Germany, headed by Dr Claudia Loy called on Wapda Chairman here on Monday and discussed with him the matters relating to financing of various hydropower projects.
The KfW Development Bank is providing 97 million Euros for the construction of 122 MW-Keyal Khwar and has also committed to co-finance the 35 MW-Harpo Hydropower Project along with its French counterpart AFD by providing 20 million Euros. In addition, the KfW Development Bank has also shown interest in financing the 80 MW-Phandar Hydropower Project.
During the meeting with the KfW Development Bank’s delegation, Wapda Chairman thanked them for their support in financing a number of Wapda projects.
He expressed the hope that the cooperation between the KfW Development Bank and WAPDA would be further enhanced in the days to come. He apprised the delegation that main works of Keyal Khwar Hydropower Project will soon be initiated, as all the pre-requisites are almost finalised in this regard.
Wapda Chairman expressed the hope that KfW Development Bank will come forward for better investment opportunities in other hydropower projects and well being of the people of Pakistan.
The KfW Development Bank Division Chief, appreciating the technical expertise of WAPDA, said that WAPDA is one of the best organizations in Asia. She said that the KfW Development Bank and WAPDA have a long history of mutual cooperation, adding that the Bank would continue supporting WAPDA for construction of water and hydropower projects.
We feel Pakistan’s energy sector needs more financing from Germany, she added.
The United States on Wednesday pledged support for Pakistan’s massive $14 billion 4,500MW Diamer-Bhasha dam project as top officials and business leaders explored investment prospects, amid exponential energy needs of America’s ‘critical partner’ nation.
Both the US officials – including US Agency for International Development (USAID) Administrator Dr Rajiv Shah and US Special Representative Dan Feldman – and Pakistan’s Finance Minister Senator Ishaq Dar and Minister for Water & Power Khawaja Muhammad Asif, who is also defence minister, highlighted tremendous opportunities for American and international investors in the ‘transformational’ power generation and water storage project.
The officials spoke at a joint platform that brought together senior leaders and experts and business leaders at the US Chamber of Commerce at a meeting, co-hosted by the USAID and the US-Pakistan Business Council. Pakistan’s Ambassador to the United States Jalil Abbas Jilani and US Ambassador in Islamabad Richard Olson participated in the daylong conference, spread over several sessions.
Pakistan needs 10,000MW of power to meet its rapidly growing domestic, industrial and agrarian requirements. The materialisation of Diamer-Bhasha dam will be a giant step in that quest.
Besides producing 4,500MW of power, the dam will help with four million acre of water for irrigation, save millions from flash flooding, boost other hydro projects and contribute vitally to extending life of Tarbela Dam by 30 years.
The Obama administration officials assured the investors of effective results, citing results from US-financed energy up-gradating projects in Pakistan.
“We know that success can take hold,” Dr Shah said in reference to completion of small projects and addition to power generation capacity of large dams.
Daniel Feldman said the US and Pakistan have a wide-ranging strategic partnership and that Washington is in for a long-term economic and investment relationship with Pakistan, particularly in the energy field. “Investment in Diamer-Bhasha dam is the smartest choice for Pakistan,” Feldman remarked, reiterating the White House and Secretary John Kerry’s commitment to back economic and energy security of Pakistan.
Finance Minister Ishaq Dar said Prime Minister Nawaz Sharif’s government is committed to encouraging foreign investment in various sectors of the economy and is crystal clear that the country needs both the Dasu and Bhasha dams. “We have demonstrated our commitment – and acquired land from own indigenous resources,” he added.
He apprised the meeting of government’s robust economic agenda, saying Islamabad has stemmed the economic downslide it inherited and now exports, GDP rate, remittances, revenue collection and industrial growth, have all registered marked growth.
“Despite demonstrations in Islamabad, the rupee has been fairly staying at stable exchange rate, while inflation has also been checked,” he added. Senator Dar said the government has paid off circular debt it had inherited from the previous administration.
Khawaja Asif said Washington’s support for the vital Diamer-Bhasha dam would cement the relationship between the two countries.
Pakistan's Environmental Protection Agency announced this week that it has awarded a US$1.4 billion contract for development of the 720-MW Karot hydroelectric project on the Jhelum River in the Rawalpindi district of Pakistan, to a group of Pakistani and Chinese investors that includes China Three Gorges South Asia Investment Ltd. (CTGC).
Published information indicates 93% of the project’s funding is through CTGC and the remaining 7% from Pakistan-based Associated Technologies (Private) Ltd. The National Transmission and Dispatch Company Ltd. (NTDC) of Pakistan plan to complete the project by 2020.
Karot Power Co. (Private) Ltd. will operate the run-of-river hydroelectric power plant, which includes an underground powerhouse that will generate electricity from four 183-MW Francis turbine units. The powerhouse will be located in the province of Punjab and the Karot Dam, a concrete gravity dam, will be built on the Jhelum River.
Initially, Pakistan’s Water and Power Development Authority (WAPDA) planned the scheme, but the project was privatized and taken over by the Private Power Infrastructure Board (PPIB), which then subsequently granted operation responsibility to Karot Power Co. (Private) Ltd.
PPIB has authority to "handle" the operation of 12 hydroelectric power projects in Pakistan, according to the agency.
PPIB said the project is expected to generate 3,436 GWh annually and connect to the government-owned National Grid of Pakistan, which is operated by WAPDA. WAPDA has a 30-year Power Purchase Agreement with NTDC.
According to Pakistan’s 2002 Power Generation Policy, private sector-developed hydroelectric projects must be developed on the basis of Build-Own-Operate-Transfer. In this case, NTDC must transfer to the government of Pakistan, free of charge, the Karot hydroelectric project after operating it for 30 years.
Pakistan's Water and Power Development Authority (WAPDA) invites expressions of interest from consultants for supervision of upgrade and refurbishment of six turbine-generators of the 1,000-MW Mangla Dam hydroelectric project. Responses are due August 17.
WAPDA issued a solicitation in 2013 for pre-qualification to refurbish and upgrade Units 5 and 6 at Mangla to increase installed capacity of the units to 135 MW from 100 MW. It took bids last year to supply generator step-up transformers and to refurbish powerhouse cranes for Mangla, on Pakistan's Jhelum River. The U.S. Congress released US$280 million in 2012 to support improvements to Mangla and the 83-MW Kurram Tangi project.
In the current solicitation, WAPDA invites expressions of interest from consultants to supervise upgrade and refurbishment of Units 1-6 at Mangla.
Pakistan's 1,300-MW Tarbela Dam 5th Extension hydropower project received consent from the government's Central Development Working Party earlier this week, leaving approval by the Executive Committee of National Economic Council as its final hurdle.
The 5th Extension -- an addition to the 3,480-MW Tarbela plant -- is being developed by the Water and Power Development Authority. WAPDA extended its deadline for expressions of interest for project preparation and design of the 5th Extension in August.
The 5th Extension would use an existing irrigation tunnel extending from the original plant. Its predecessor, the 1,410-MW 4th Extension, also uses an irrigation tunnel and is currently under construction. WAPDA chair Zafar Mahmood urged completion of the 4th Extension by 2017 during a briefing session earlier this year.
HydroWorld.com reported in February that WAPDA had awarded a contract to Voith Hydro of Germany and Voith Hydro of Shanghai to supply electro-mechanical works for the 4th Extension.
Tarbela Dam, completed in 1974, was designed to store water from the Indus River for irrigation, flood control and the generation of hydroelectric power.
The 148 meter high, 3,000 meter long dam has two gated spillways and five tunnels that provide irrigation releases and power generation. At the time of construction the dam tunnels 1, 2 and 3 were scheduled for power generation and tunnels 4 and 5 were designed exclusively for irrigation release.
WAPDA is also in the process of repairing and upgrading the original plant.
#China and #Pakistan sign US$50 billion MoU for #Indus River Cascade. #Bhasha #Dasu #Patan #Thakot Dams. #CPEC http://www.hydroworld.com/articles/2017/05/china-and-pakistan-sign-mou-for-us-50-billion-earmarked-for-indus-river-cascade.html China and Pakistan signed a US$50 billion memorandum of understanding (MoU) on May 13 to develop and complete the Indus River Cascade, according to information from the China-Pakistan Economic Corridor (CPEC). The MoU was one of several signed related to improving and developing Pakistan’s infrastructure.
Yousuf Naseem Khokhar, Pakistan’s Water and Power Development Authority (WAPDA) secretary for Water and Power, and Chinese Ambassador in Pakistan, Sun Weidong, signed the MoU under the CPEC agreement during the Diamer-Bhasha Project Conference hosted by China’s National Energy Administration (NEA) in Beijing, China.
Under the MoU, China’s NEA would oversee building and funding the five hydropower projects that have an estimated total installed generation capacity of 22,320 MW and according to WAPDA, the Indus River has a potential of producing 40,000 MW.
The Indus River Cascade begins from Skardu in Gilgit-Baltistan and runs through Khyber Pakhtunkhwa, both located in the northwestern portion of Pakistan. Overall, Pakistan has identified a potential of 60,000 MW from hydropower projects.
The planned cascade includes the 4,500-MW Diamer-Basha project, which is already being constructed and four additional projects being developed: 2,400-MW Patan; 4,000-MW Thakot; 7,100-MW Bunji; and 4,320-MW Dasu.
In April, WAPDA awarded a pair of contracts to perform resettlement works associated with construction of the two-stage Dasu hydropower project to China's Zhongmei Engineering Group, worth about $18.56 million combined. The work includes the resettlement of Barseen, Kaigah, Khoshe, Logro, Nasirabad and Uchar.
WAPDA said the resettlement package includes utilities, roads and other amenities including schools, livestock accommodations and recreational areas.
In February, WAPDA announced it finalized the main contracts for civil works for stage-1 of the Dasu project, which is 2,160 MW. The Dasu hydropower stage-I project is estimated to cost about $4.2 billion and is located on the Indus River in the Kohsitan district of Khyber Pakhtunkhwa. Its location is about 240 km upstream of the 3,480-MW Tarbela hydropower complex and 74 km downstream from the Diamer-Basha site.
According to CPEC information, funding the Indus River Cascade represents China’s second-largest investment in Pakistan following $57 billion already committed to several infrastructure improvements under the CPEC.
Indian media on Bunji and Bhasha dams in Gilgit Baltistan:
China To Invest $27 Billion In Construction Of Two Mega Dams In Pakistan-Occupied Gilgit-Baltistan
China and Pakistan have inked a memorandum of understanding (MoU) for the construction of two mega dams in Gilgit-Baltistan, a part of India’s Jammu and Kashmir state that remains under latter’s illegal occupation. The MoU was signed during the visit of Pakistan’s Prime Minister Nawaz Sharif to Beijing for participation in the recently concluded Belt and Road Initiative.
The two dams, called Bunji and Diamer-Bhasha hydroelectricity projects, will have the capacity of generating 7,100MW and 4,500MW of electricity respectively. China will fund the construction of the two dams, investing $27 billion in the process, a report authored by Brahma Chellaney in the Times of India has noted.
According to Chellaney, India does not have a single dam measuring even one-third of Bunji in power generation capacity. The total installed hydropower capacity in India’s part of the state does not equal even Diamer-Bhasha, the smaller of the two dams.
The two dams are part of Pakistan’s North Indus River Cascade, which involves construction of five big water reservoirs with an estimated cost of $50 billion. These dams, together, will have the potential of generating approximately 40,000MW of hydroelectricity. Under the MoU, China’s National Energy Administration would oversee the financing and funding of these projects.
Post a Comment