Wapda to contribute Rs271b to hydro projects

The Water and Power Development Authority (Wapda) will contribute Rs271 billion as equity for three mega hydropower projects, it has emerged. This followed after the authority completed three previous much-delayed hydropower projects under a fast-track policy and generated nearly Rs80bn in revenue.

"For the last few years, we introduced a multi-pronged strategy to arrange funds for the completion of various important projects. So far, we have implemented this strategy well on Neelum-Jhelum, Tarbela 4th extension and Golen Gol hydropower projects. These projects helped us earn Rs80bn, increasing our own financial resources and contribution (equity) for three mega projects - Diamer-Bhasha, Dasu and Mohmand dams," said Wapda Chairman retired Lt Gen Muzammil Hussain.

"When any work is finished on the dot, it saves money, energy and time. But if it is delayed, several issues come up, including cost escalation," he told Dawn.

According to a recent report, from Wapda's Rs271b equity, Rs176b will go to DiamerBhasha dam (DBD), Rs66b to Dasu project and Rs29b will go to Mohmand hydropower project. The authority will recover its equity through tariff which hinges on timely payments by the Central Power Pur-chase AgencyGeneral within a period of nine years for DBD, five years for Dasu and 6 years for Mohmand.

Under the financial plan devised for these projects, Rs1300bn has been estimated for the overall DBD which includes

Rs234bn provided by the federal government under the Public Sector Development Programme (PSDP), Rs176bn through Wapda's equity, Rs100bn through local commercial financing and Rs475bn from foreign commercial financing.

Similarly, Rs443bn has been allocated in total for Dasu hydropower project of which Rs66bn will come from Wapda's equity, Rs80bn from IDA-1/2 credit, Rs37bn from Credit Suisse loan, Rs31bn from export credit agencies, Rs45bn from World Bank, Rs144bn from local financing or Sukuk Bond and Rs3bn from local financing or loan.

For the Rs309b estimated overall for the Mohmand dam project, Rs114b will come from PSDP, Rs29b from Wapda's equity, Rs33b from local commercial financing and Rs83b from foreign currency financing.