Pakistan to Build Massive Dams for Abundant Water and Power
China and Pakistan have agreed to finance and build two mega dams in Gilgit-Baltistan region of Pakistan. A memorandum of understanding (MoU) for this development was signed by the leaders of the two countries on the sidelines of the Belt and Road Initiative (BRI) summit in Beijing.
The two dams, called Bunji and Diamer-Bhasha projects, will have the capacity to generate 7,100MW and 4,500MW of electricity respectively. China will provide $27 billion to fund the construction of the two dams, according to media reports.
Pakistan's Hydropower Potential:
Pakistan has the potential to generate 59,000MW of hydropower, according to studies conducted by the nation's Water and Power Development Authority (WAPDA). Currently, it's generating only 6,600MW of hydroelectric power, about 11% of the estimated potential. Media reports indicate that China is prepared to finance and build another 40,000MW capacity as part of the development of the Northern Indus Cascade region which begins in Skardu in Gilgit-Baltistan and runs through to Tarbela, the site of Pakistan’s biggest dam, in Khyber-Pakhtunkhwa province.
Diamer-Bhasha Water Storage:
Diamer-Bhasha project is located on Indus River, about 200 miles upstream from the existing Tarbela Dam, 100 miles downstream from the Northern Area capital Gilgit in Gilgit-Baltistan region. It will generate 4,500 MW of electricity and its reservoir will hold so much water that it could have averted recent devastating floods that affected large parts of Pakistan. It would also provide enough electricity to end Pakistan's crippling shortages, according to a report in the Guardian newspaper. The Diamer-Bhasha reservoir would be 50 miles long, holding 8.5 MAF (million acre feet) of water.
Response to Climate Change:
Pakistan has made only a small contribution to climate change through carbon emissions. And yet, it counts among the dozen or so nations considered most vulnerable to its damaging effects. These include rising temperatures, recurring cycles of floods and droughts and resulting disruption in food production.
One of the ways Pakistan can help reduce carbon emissions is by realizing its full hydroelectric potential by building more dams. The development of the Northern Indus Cascade region to generate 40,000MW of hydropower is a significant part of this effort.
Prerequisite for Economic Development:
Availability of abundant and cheap electricity has historically preceded rapid economic development in America, Europe and East Asia. Pakistan has an opportunity to meet this prerequisite by generating large amounts of clean renewable hydropower to meet its hunger for energy required for rapid economic growth in all sectors of the economy ranging from agriculture to manufacturing and services.
Summary:
Pakistan is endowed with significant amount of water and power resources that can be harnessed to enable rapid economic growth in all sectors of its economy. It appears that the Chinese investment, as part of China-Pakistan Economic Corridor, is now putting this goal within reach. Tens of thousands of megawatts of added electricity and millions of acre feet of additional water will hopefully transform Pakistan's economy and bring prosperity to its people.
Here's a video on the subject:
https://youtu.be/y-VkLn2J6fM
Related Links:
Haq's Musings
Recurring Cycles of Drought and Floods in Pakistan
Pakistan's Response to Climate Change
Renewable Energy for Pakistan
LNG Imports in Pakistan
Growing Water Scarcity in Pakistan
China-Pakistan Economic Corridor
Ownership of Appliances and Vehicles in Pakistan
 |
| Actual vs Potential Hydropower in South Asia. Source: Economist Magazine |
The two dams, called Bunji and Diamer-Bhasha projects, will have the capacity to generate 7,100MW and 4,500MW of electricity respectively. China will provide $27 billion to fund the construction of the two dams, according to media reports.
Pakistan's Hydropower Potential:
Pakistan has the potential to generate 59,000MW of hydropower, according to studies conducted by the nation's Water and Power Development Authority (WAPDA). Currently, it's generating only 6,600MW of hydroelectric power, about 11% of the estimated potential. Media reports indicate that China is prepared to finance and build another 40,000MW capacity as part of the development of the Northern Indus Cascade region which begins in Skardu in Gilgit-Baltistan and runs through to Tarbela, the site of Pakistan’s biggest dam, in Khyber-Pakhtunkhwa province.
Diamer-Bhasha Water Storage:
Diamer-Bhasha project is located on Indus River, about 200 miles upstream from the existing Tarbela Dam, 100 miles downstream from the Northern Area capital Gilgit in Gilgit-Baltistan region. It will generate 4,500 MW of electricity and its reservoir will hold so much water that it could have averted recent devastating floods that affected large parts of Pakistan. It would also provide enough electricity to end Pakistan's crippling shortages, according to a report in the Guardian newspaper. The Diamer-Bhasha reservoir would be 50 miles long, holding 8.5 MAF (million acre feet) of water.
Response to Climate Change:
Pakistan has made only a small contribution to climate change through carbon emissions. And yet, it counts among the dozen or so nations considered most vulnerable to its damaging effects. These include rising temperatures, recurring cycles of floods and droughts and resulting disruption in food production.
One of the ways Pakistan can help reduce carbon emissions is by realizing its full hydroelectric potential by building more dams. The development of the Northern Indus Cascade region to generate 40,000MW of hydropower is a significant part of this effort.
Prerequisite for Economic Development:
Availability of abundant and cheap electricity has historically preceded rapid economic development in America, Europe and East Asia. Pakistan has an opportunity to meet this prerequisite by generating large amounts of clean renewable hydropower to meet its hunger for energy required for rapid economic growth in all sectors of the economy ranging from agriculture to manufacturing and services.
Summary:
Pakistan is endowed with significant amount of water and power resources that can be harnessed to enable rapid economic growth in all sectors of its economy. It appears that the Chinese investment, as part of China-Pakistan Economic Corridor, is now putting this goal within reach. Tens of thousands of megawatts of added electricity and millions of acre feet of additional water will hopefully transform Pakistan's economy and bring prosperity to its people.
Here's a video on the subject:
https://youtu.be/y-VkLn2J6fM
Related Links:
Haq's Musings
Recurring Cycles of Drought and Floods in Pakistan
Pakistan's Response to Climate Change
Renewable Energy for Pakistan
LNG Imports in Pakistan
Growing Water Scarcity in Pakistan
China-Pakistan Economic Corridor
Ownership of Appliances and Vehicles in Pakistan
Comments
http://dailytimes.com.pk/features/18-Mar-17/neelumjhelum-hydropower-project
The Neelum–Jhelum Hydropower Plant is a run-of-the-river hydroelectric power project, with a cost of 404.32 billion rupees (US$ 4.03 billion). The project (under construction since 2008) is designed to divert water from the Neelum River to a power station on the Jhelum River. The power station is located in Azad Kashmir, 22 km south of Muzaffarabad and will have an installed capacity of 968 Mega-Watts. Construction on the project began in 2008, a Chinese consortium was awarded the construction contract in July 2007. The first generator is scheduled to be commissioned in July 2017 and the entire project is expected to be completed and start its operations in December 2017.
Design and operations;
The Neelum–Jhelum Dam is a 47 m (154 ft) high and 125 m (410 ft) long gravity dam.
It will withhold a pondage (reservoir) with 8,000,000 m3 (6,486 acre·ft) capacity of which 2,800,000 m3 (2,270 acre·ft) is peak storage. The dam has the capacity to divert up to 280 m3/s (9,888 cu ft/s) of the Neelum River, into a 28.5 km long head-race tunnel, the first 15.1 km of the head-race is two tunnels which later meet into one.
The tunnel passes 380 m (1,247 ft) below the Jhelum River and through its bend. At the terminus of the tunnel, the water reaches the surge chamber which contains a 341 m (1,119 ft) tall surge shaft (to prevent water hammer) and 820 m (2,690 ft) long surge tunnel.
From the surge chamber, the water is split into four different penstocks which feed each of the four 242 MW Francis turbine-generators in the underground power house.
After being used to generate electricity, the water is discharged back into the Jhelum River through a 3.5 km long tail-race tunnel. The drop in elevation between the dam and power station afford an average hydraulic head of 420 m (1,378 ft).
Decision by ICA;
Hague’s Permanent Court of Arbitration;
In 2010, Pakistan appealed to the Hague's Permanent Court of Arbitration, complaining that the Kishanganga Hydroelectric Plant violates the “Indus River Treaty” by increasing the catchment of the Jhelum River and depriving Pakistan of its water rights. In June 2011, the CoA visited both the Kishanganga and Neelum–Jhelum Projects. In August 2011, they ordered India to submit more technical data on the project. India had previously reduced the height of the dam from 98 m (322 ft) to 37 m (121 ft).
The court asked India in September 2011 to stop constructing any permanent works that would inhibit restoration of the river. With the ruling of International Court of Arbitration, India was not allowed to construct the dam (Reservoir), so, they continued work on the tunnel and power plant. In February 2013 the Hague ruled that India could divert a minimum of water for the Kishanganga Hydroelectric Plant. The Kishanganga Hydroelectric Plant is an $864 million dam which is part of a run-of-the-river hydroelectric scheme that is designed to divert water from the Kishanganga River to a power plant in the Jhelum River basin. It is located 5 km (3 mi) north of Bandipore in Jammu and Kashmir, and will have an installed capacity of 330 MW. Construction on the project began in 2007 and is expected to get complete in 2018.
http://www.hydroworld.com/articles/2017/07/pakistan-s-energy-sector-improvement-includes-rehab-for-1-000-mw-mangla-hydropower-project.html
Pakistan and French Agency for Development (AFD) on July 20 signed €165 million (US$192 million) in soft loan agreements to improve Pakistan’s energy sector, including rehabilitating the 1,000-MW Mangla hydropower project, according to the government of Pakistan.
The agreements also include financing for the power transmission enhancement investment program, Tranche 4, which covers investment to improve electricity distribution efficiency.
The agreements were signed in Islamabad, Pakistan, by Secretary, Economic Affairs Division, Shahid Mahmood; Ambassador of France, Martine Dorance; and Country Director French AFD, Jacky Amprou.
The Mangla hydropower project is a multipurpose facility located on the Jhelum River in Mirpur district of Azad Kashmir. It includes Mangla Dam, which is the seventh largest dam in the world; the country’s largest reservoir, which has a live storage capacity of 7.48 million acre feet; and 10 generating units.
In January, HydroWorld.com reported Pakistan Water and Power Development Authority announced it was moving forward with modernization of the Mangla project to increase the facility’s generating output by 310 MW at an estimated cost of $769 million.
Pakistan said this latest round of financing for the specified projects is a continuation of implementing the country’s National Power Policy 2013.
Pakistan’s National Power Policy 2013 is designed solidify the country’s energy security by increasing electricity generation to 26.8 GW, reduce average electricity rates by more than 30%, achieve zero load shedding, encourage huge public and private investment and import electricity from India, Iran and Central Asian states, according to the government.
In June, AFD co-financed about $100 million of a $400 million program as part of Asian Development Bank’s (ADB) support of Pakistan’s efforts to provide a more reliable and secure energy sector.
According to ADB, its $300 million in assistance to Pakistan is the third such loan under the Sustainable Energy Sector Reform program, bringing ADB’s total financing to $1 billion since 2014.
Last month, the first generating unit at Pakistan's 147-MW Patrind hydroelectric plant began generating power and was connected to the national grid, according to a statement from National Transmission and Despatch Company (NTDC). NTDC operates transmission lines for Pakistan Water and Power Development Authority.
Patrind is located on the Kunhar River and is being developed by a consortium called Star Hydro Power Ltd, which includes the Korea Water Resources Corp. and the Daewoo Engineering & Construction Co.
In May, China and Pakistan signed a $50 billion memorandum of understanding to develop and complete the Indus River Cascade, according to information from the China-Pakistan Economic Corridor.
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.
July 21, 2017 at 11:00 PM Delete
http://www.hydroworld.com/articles/2017/07/pakistan-signs-deal-to-construct-us-698-3-million-sharmai-hydropower-project.html
Pakistan is moving forward with hydropower development in its northwestern-most province, Khyber Pakhtunkhwa (KP), located in the district of Dir near Afghanistan’s eastern border, according the government of KP.
KP made the announcement on July 23 after Pakistan Chief Minister Pervez Khattak signed an agreement between Pakhtunkhwa Energy Development Organization (PEDO) and a consortium of Sinohydro and Lahore-based Sapphire Electric Co. for construction of the 150-MW Sharmai hydropower project.
PEDO Chief Executive Officer, Akbar Ayub, said the project is expected to be completed in five years at an estimated cost of US$698.3 million. But, he did not provide any information on the project’s start date.
Information from KP indicates the Sharmai hydro project will include a dam and reservoir, and the powerhouse will be located near Darora village and on the confluence of Usherai Khwar Stream and Panjkora River.
Additional technical information for the project includes the following:
Net head – 196.6 m;
Annual energy generation – 682 GWh;
Reservoir capacity – 32.2 million cubic meters;
Length of power tunnel – 7.8 km; and
Catchment area – 1,950 km2.
The Sharmai hydro project continues the country’s recent trend towards massive planned infrastructure improvements.
Pakistan and French Agency for Development on July 20 signed US$192 million in soft loan agreements to improve Pakistan’s energy sector, including rehabilitating the 1,000-MW Mangla hydropower project, according to the government of Pakistan.
The Mangla hydropower project is a multipurpose facility located on the Jhelum River in Mirpur district of Azad Kashmir. It includes Mangla Dam, which is the seventh largest dam in the world; the country’s largest reservoir, which has a live storage capacity of 7.48 million acre feet; and 10 generating units.
Earlier this year, China and Pakistan signed a US$50 billion memorandum of understanding on May 13 to develop and complete the Indus River Cascade, according to information from the China-Pakistan Economic Corridor.
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 2016, HydroWorld.com reported KP's hydroelectric power development fund approved the 84-MW Matiltan, 69-MW Daral Khwar, 69-MW Lawi, 40.8-MW Koto and 10.2-MW Jabori plants – all of which are currently in development. In addition, feasibility studies are being conducted for the 446-MW Kari Mushkar, 410-MW Tor Camp Godobar and 110-MW Gabral Kalam.
Ayub also said seven additional hydropower projects with a total combined installed capacity of 668 MW would be initiated through private sector that would bring $2 billion investment in the province, according to government information.
By Nadia Naviwala
https://www.devex.com/news/pakistan-s-100b-deal-with-china-what-does-it-amount-to-90872
Early last year, the Pakistani government sent USAID officials in Islamabad a mystifying letter via snail mail: please stop doing feasibility studies for Diamer Basha Dam
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When USAID got the letter in 2016, they suspected that Pakistan had found funding with the Chinese. They were right.
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In May 2017 Pakistan and China signed a $50 billion agreement that included full funding for Diamer Basha and four other dams.
Although enormous, the new agreement hardly merited coverage in Pakistan. China already captured headlines and public imagination in 2013 when the two countries signed memorandums of understanding worth $46 billion to build the China-Pakistan Economic Corridor. CPEC has since quietly grown to a $62 billion investment.
The latest $50 billion in memorandums now brings Chinese loans and investments in Pakistan to well over $100 billion. A senior member of the CPEC team at Pakistan’s Ministry for Planning, Development, and Reform predicts that figure will ultimately grow to $150 billion. If the dams face cost overruns — which are 96 percent on average — then that will be a conservative estimate.
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roads and rail are actually a small part of Chinese money in Pakistan — less than $11 billion of the original $46 billion agreement. It’s small because, contrary to popular perceptions, much of the CPEC route is actually financed by Pakistan.
“Much of the roads being built are being built by our money,” says Miftah Ismail, who was Pakistan’s minister for investment until late last month, when the cabinet was dissolved because the Supreme Court voted to remove the prime minister on grounds of corruption.
What Ismail estimates Pakistan will take on in Chinese projects this year — $4 billion in loans and investments — equals what the Pakistani federal and provincial governments have allocated for roads and highways in their own annual budgets.
China is also financing the expansion and improvement of Pakistan’s neglected railway system, doubling its speed from 60 to 120 kilometers per hour.
CPEC roads will connect landlocked Xinjiang province in western China through a new port city that it is building on Pakistan’s coast, Gwadar. China needs these roads to transport goods out, but it is hard to think of what will go in the other direction. China’s exports to Pakistan account for two-thirds of Pakistan’s trade deficit.
Construction of the 720MW Karot power station on the Jhelum river began in December and looked set to finish nine months ahead of its December 2021 completion date, a first for a Pakistan hydro-project, said Qin Guobin, chief executive officer of the state-owned China Three Gorges South Asia Investment Ltd.
The company has put in place an aggressive strategy to cut the project’s financing costs.
“For us, Pakistan is a strategic market,” Qin said at the site. “If we managed to complete it earlier we can save financing costs and make it more competitive.”
Pakistan’s energy demand is expected to grow by 6 per cent to 35,000MW by 2024 as its population of more than 200 million people grows along with the economy. For more than a decade, it has been struggling to overcome daily power shortages that have left industry and residents in the dark.
China has stepped in to meet some of those shortages, financing projects worth more than US$50 billion in an economic corridor that runs through Pakistan. The route is part of Chinese President Xi Jinping’s “Belt and Road Initiative” to connect Asia with Europe and Africa with a web of ports, railways and motorways links for trade.
Three Gorges’ focus in Pakistan is clean energy and it has a US$6 billion portfolio in three hydro and three solar power plants. The Karot project is in the Pakistan-administrated part of Kashmir, which India and Pakistan both claim and have fought two wars over since independence in 1947.
http://www.hydroworld.com/articles/2017/10/world-bank-report-hydro-important-part-of-private-infrastructure-development-in-pakistan.html
A recent report on private investment in infrastructure development, released by the World Bank Group, offers some insights into hydro, including the fact that investments in two hydropower plants in Pakistan helped boost that country into the top five.
The January-June 2017 Private Participation in Infrastructure Half Year Update cites investments in hydropower in Pakistan worth US$1.9 billion and US$1.7 billion and says the country was a new entrant to the list of top five countries for private participation in infrastructure. Other countries in the top five are Indonesia, Jordan, Brazil and China.
In Pakistan, the US$1.9 billion investment is for the 870-MW Suki Kinari Hydropower Plant. Suki Kinara is on the Kunhar River in the Mansehra district of Khyber Pakhtunkhwa and is expected to be completed by 2021.
The US$1.7 billion investment is for the 720-MW Karot Hydropower Plant. The Karot project, on the Jhelum River east of Islamabad, is being developed under Pakistan’s Power Policy of 2002. The first units are expected to go on line in 2020.
A section of the report discusses the energy sector, which was “the most dominant sector for H1 [first half] 2017 investment, accounting for three-quarters of global investments.” The report indicates that, by capacity, hydro projects led the way with cumulative capacity of 1.9 GW.
Of all the private participation in the energy sector in the first half of 2017, 85% was in renewables, and 15% of that 83% was hydropower.
JANUARY – JUNE
2017
Private Participation
in Infrastructure (PPI)
HALF YEAR UPDATE
https://ppi.worldbank.org/~/media/GIAWB/PPI/Documents/Global-Notes/PPI2017_HalfYear_Update.pdf
Indonesia was the destination for the highest amount of PPI investment, while Pakistan and
Jordan were new entrants to the top five countries, joining Indonesia, Brazil, and China.
Indonesia, Pakistan, and Jordan are amongst the top five highest PPI-investment countries because
of a few multibillion-dollar power projects. Indonesia saw investments in US$ 4.2 billion and US$2.2
billion coal fired power plants, Jordan had a US$2.1 billion investment in an oil shale-fired power
plant, and Pakistan had investments in two hydropower plants worth US$1.9 billion and US$1.7 billion.
https://dailytimes.com.pk/261826/work-on-tarbela-5th-extension-adding-1410mw-to-national-grid-to-begin-this-year/
The construction work on Tarbela 5th extension hydropower project on River Indus in Swabi district will start in 2018-19 fiscal year, Daily Times learnt on Monday.
While talking to Daily Times, the official spokesperson of WAPDA, Abid Rana, said that the project would be completed in four years at a cost of Rs.82,361.6 million. “It will have generation capacity of 1,410 megawatts (MW), with its three units each contributing 470MWs. The annual energy generation of the project would be 1,810 Gigawatts hours (GWh). Its benefits are estimated at US$ 134 million per year,” he said, adding, “It is a huge quantum of electricity and will definitely bridge the gap between the demand and supply. This project will also affect the tariffs as at present the overall energy mix has high thermal share and with increase of hydel ratio the tariffs will get stable and it will lead to a decrease in the cost of generation.”
According to an official of the Water and Power Development Authority (WAPDA), the PC-I (planning commission I) of the project had been approved by the Executive Committee of the National Economic Council (ECNEC), in a meeting held in December 2016. Two loan agreements amounting to USD 390 and 300 million have been signed with World Bank and Asian Infrastructure Investment Bank (AIIB), respectively, for the purpose. After completing all formalities, World Bank and AIIB loans became effective from August 11, 2017, whereas the loan closing date for both loans would be June 30, 2022.
The objective of the project is to facilitate a sustainable expansion of Pakistan’s electricity generation capacity without affecting the capacity for irrigation release. The total installed capacity of Tarbela Dam, after completion of the 5th Extension, will rise to 6,298 MW. The project would also benefit in further development of Pakistan’s hydropower potential along the Indus River Cascade which has been a cornerstone of the World Bank Strategy and Pakistan’s energy policy to reduce load-shedding, cost of electricity production, and improve financial sustainability.
Regarding progress of the project, the WAPDA official said the process of procurement and recruitment for consultancy services was underway and a Request for Proposal (RFP) had been issued to shortlisted consultants. The official said technical evaluations of the proposals received so far were being done currently.
Tarbela Dam was completed in 1974. It was designed to store water from Indus River for irrigation, flood control, and the generation of hydroelectric power. Almost 14 power generation units were installed at three tunnels during various stages with a cumulative installed capacity of 3,478MW, whereas the other two tunnels were for irrigation purposes only. The Tarbela 4th extension was made in October 2013 with a cost of $795.8 million and after the success of the project the 5th extension was planned which got approved by the Government of Pakistan.
Hydropower generation: 34.42 TWh (2016)
https://www.hydropower.org/country-profiles/pakistan
A number of hydropower plants were completed or commissioned in 2016 including Ranolia (17 MW), Daral Khwar (37 MW) and Machai (2.6 MW), all located in the Khyber Pakhtunkhwa province.
Several micro hydropower projects were also installed as part of an initiative led by the government of Khyber Pakhtunkhwa, with the support of the Asian Development Bank, to install some 1,000 micro plants. Expected to have a total installed capacity of 100 MW, these micro projects are designed to support rural, off-grid communities by providing affordable and reliable electricity.
Numerous projects are currently under planning and construction in the private sector, overseen by the Private Power & Infrastructure Board, including Karot (720 MW), Suki (870 MW) and Kohala (1,124 MW). These projects are part of the China–Pakistan Economic Corridor (CPEC) – a collection of infrastructure projects supported by the Chinese Government to strengthen Pakistan’s economy and enhance the economic connectivity between both countries.
The run-of-river Patrind hydropower project is another being led by the private sector, a Korean consortium including Star Hydro Power, K-water and Daewoo Engineering & Construction Company.
Scheduled for completion in 2017, the project has also received loans from the Islamic Development Bank, International Finance Corporation, Asian Development Bank and the Export-Import Bank of Korea.
The regulatory regime for private sector investors includes substantial incentives such as generous return on equity, tax concessions and hydrological risk cover.
Current public sector projects under construction and overseen by WAPDA include Golen Gol (106 MW), Neelum-Jhelum (969 MW), Dasu (4,320 MW) and the extension of the Tarbela plant.
The construction on the fourth extension of the 3,478 MW Tarbela hydropower plant located on the Indus River continues, with completion likely in 2017. The Tarbela Dam is the largest earth-filled dam in the world, and the fourth extension to the hydropower plant will lift its installed capacity to 4,888 MW. The World Bank and the Asian Infrastructure Investment Bank have also announced USD 720 million in co-financing to help fund the fifth extension to the plant, which will add a further 1,140 MW in capacity.
https://steelguru.com/power/ge-to-refurbish-mangla-power-station-by-2023/511191
General Electric is expecting to finish refurbishing work on 1,000 megawatts of Mangla hydropower plants within the next five years to bring a 35 percent increase in the station’s production capacity, the company’s executive said.
Sarim Sheikh, chief executive officer of GE Pakistan, Iran and Afghanistan said the station’s refurbishing would be completed by 2023 with a cost of around Rs15 billion. “After completion, the plants would be able to generate 35 percent more electricity using same amount of water.”
The project is jointly funded by a French development agency and the United States Agency for International Development.
The project is a major component of the Water and Power Development Authority’s (Wapda) plan of adding low-cost hydropower generation to overcome shortage of electricity and maximise share of hydropower in electricity grid.
Mangla power station, located in Kashmir, has an installed capacity of 1,000MW. The existing station has 10 generating units, having capacity of 100MW each with a useful life of 30 years extendable up to 35 years.
The first unit was commissioned in 1967. All units at Mangla have efficiently been working and generating electricity since then in accordance with their installed capacity despite completion of their useful life long ago.
The Wapda planned to refurbish the existing Mangla hydropower station to benefit from additional 2.88 million acres feet of water and 40 feet additional water head available with completion of Mangla dam raising project in 2009.
Sheikh said the modern technology is being used to optimise generation capacity of Mangla hydropower station. “The quantum of water, which generates 1,000MW, will be sufficient to generate over 1,300MW.”
He said GE is expanding its footprints in hydropower, coal, gas and renewable generation across the country. GE is expected to power 40 percent of the country’s overall electricity generation by 2019.
The company’s executive added that “Pakistan’s generation capacity will stand at around 35,000MW by 2019; of which 14,000MW would be generated through GE equipment.”
http://www.globalconstructionreview.com/news/pakistan-finally-gives-green-light-controversial-i/
A Chinese-Pakistani joint venture has been awarded a project to build a dam on the River Indus in the disputed Kashmir region between India and Pakistan.
When completed in 2028, the Diamer Bhasha dam, China’s first major civil engineering scheme in Kashmir, will have a 272-metre-high barrage, making it the tallest roller-compacted concrete dam in the world.
The project will be part of the China-Pakistan Economic Corridor (CPEC), itself part of China’s Belt and Road Initiative.
It will have a generating capacity variously given as 4.8GW and 6GW, and will be situated in the Pakistan-administered region of Gilgit-Baltistan, about 320km from the Chinese border.
As well as power, the dam will create a 200 sq km reservoir, greatly increasing Pakistan’s water security.
According to the Nikkei Asian Review, the first phase of the dam, worth $2.8bn, has been awarded to a team made up of China’s Power Construction Corporation and the Pakistan Army’s Frontier Works Organisation, with 70% going to the Chinese company.
Muzammil Hussain, chairman of Pakistan’s Water and Power Development Authority (Wapda), announced the project at a press conference at the end of last week. He said the Pakistan government would provide 30% funding and “the rest will be arranged by the Wapda” – understood to be a reference to loans from China. Hussein put the total cost of the project at US$8.8bn, but he has previously given a figure of $14bn.
Previous attempts to build the dam on the Indus site have stumbled over the funding issue. In 2011, the US considered a loan of $12bn for the scheme, but withdrew. The Asian Development Bank approved a loan for the scheme but then withdrew its funding in 2016, and a later plan to crowdfund it failed to raise sufficient capital.
In 2016, the project was named as one of the projects in the China-Pakistan Economic corridor. However, in 2017, Pakistan backed out when the Chinese demanded 100% ownership of the completed asset.
India has raised objections to the project, partly on political and partly on engineering grounds.
The political protest is over India’s claim that the project legitimises Gilgit-Baltistan as part of Pakistan’s sovereign territory.
The engineering objection is based on the safety of such a tall roller-compacted dam in an earthquake zone.
Suleman Najib Khan, the convenor of the Water Resource Development Council, notes: “In the history of the world, no roller-compacted dam has ever been built of comparable height in such unforgiving conditions.
“In the event that the dam bursts at its proposed height of 272m during a routine seismic movement, 10 cubic kilometres of water, with the destructive power of a hydrogen bomb, will wipe out everything on the Indus all the way down to Sukkur.”
Roller-compacted dams use a blend of concrete in which fly ash is substituted for Portland cement, reducing the risk of thermal cracking during construction. The highest dam built so far using the method is the Gilgel Gibe III Dam in Ethiopia, at 250m.
Project, to be ready in 2028, expected to meet water, energy needs in Gilgit-Baltistan region
A new mega project in northern Pakistan is expected to meet both water and energy needs of the region, according to officials and experts.
Work on the construction of Diamer Bhasha Dam near Chilas, a city in the Diamer district in the Gilgit-Baltistan region, has started.
"Diamer Bhasha Dam is set to change the destiny of Pakistan by addressing its energy and irrigation problems," Faisal Vawda, Pakistan's federal minister for water resources, said. "It's Pakistan's lifeline."
The dam's reservoir will be 272 meters in height, and it is said to be the tallest roller compact concrete dam in the world.
Roller compacted concrete is a special blend of concrete that has the same ingredients as conventional concrete but in different ratios, and with a partial substitution of fly ash for Portland cement. This reduces thermal loads on the dam and reduces chances of thermal cracking.
The dam has a proposed spillway with 14 gates and five outlets for flushing out silt. The diversion system comprises two tunnels and a diversion canal. It will also include the construction of powerhouses.
Asim Saleem Bajwa, chairman of China-Pakistan Economic Corridor Authority, said the dam will generate 4,500 megawatt of hydroelectric power.
It was a historic moment as Prime Minister Imran Khan kicked off the construction work on Diamer Bhasha Dam, he said. "Around 16,000 jobs will be created during the construction of the dam."
Imran Khan officially launched the construction work on Wednesday, with Pakistan's Chief of Army Staff Qamar Bajwa by his side.
The biggest
"Diamer Bhasha Dam will be the biggest dam in Pakistan's history," the prime minister said while addressing the public during the launch. "The dam will benefit the country both economically and environmentally, especially the people of Gilgit-Baltistan," he said.
The multibillion-dollar project is estimated to be completed in 2028. It is a multipurpose project that will be used for water storage, flood mitigation, irrigation and power generation.
"This is no ordinary project. There is a reason why both Pakistan's prime minister and the army chief were present at the site for the project launch. It will have an impact on Pakistan's economy, security and politics," said Ahmed Quraishi, a senior fellow at Project Pakistan 21, an independent research organization based in national capital Islamabad.
Feather in the cap
It is another feather in the cap for the Chinese engineers who are known for undertaking challenging international projects, he said.
The project is being jointly constructed by Power China and Pakistan's Frontier Works Organization.
The Water and Power Development Authority of Pakistan approved the award of civil works for construction of the dam and the 21-MW Tangir Hydropower Project to the joint venture partners.
The two companies signed a contract in June with a local company for the construction of the diversion system, main dam and access bridge as well as the hydropower project.
"We are grateful to our all-weather friend China for its support in the construction of the mega project," said Faisal Vawda, the water resources minister.
Quraishi said the technical specifications of the project suggest it will be something that engineers worldwide will be studying due to the region's terrain. "China's experience in the dam construction is unparalleled," he said.
https://thewire.in/south-asia/pakistan-china-hydropower-projects-cpec-debts
On May 13, 2020, Pakistan signed a deal worth 442 billion Pakistani Rupees (USD 2.64 billion) with the Chinese state-run firm China Power for building the 272 meters high DBD. The total financial outlay of the DBD is PKR 1,406 .5 billion (USD 8.3 billion). This project is on the river Indus in Gilgit-Baltistan (GB) – which India claims is illegally occupied territory – and Khyber Pakhtunkhwa. It is likely to be completed by 2028.
Earlier, it was a part of the China Pakistan Economic Corridor (CPEC) project but the tough conditions, particularly regarding the transfer of ownership, were unacceptable and not “doable” for Pakistan. Afterwards, the Pakistani government tried to raise money for the DBD along with the Mohmand dam through crowdfunding. However, Pakistan then re-entered into a deal with the Chinese firm.
Under the new terms of the deal, China Power will hold 70% of the share while the remaining 30% will be with Frontier Works Organisation – a commercial arm of the Armed Forces of Pakistan. The DBD’s construction is expected to create about 16,500 jobs. Once in operation, it will irrigate around 1.23 million acres of agriculture land and generate 18.1 billion units of electricity annually.
The second project the Chinese are constructing in Pakistan is at Kohala. It was listed under the China Pakistan Economic Corridor since August 2014. The Kohala project is on the Jhelum river on the Pakistani-administered side of Kashmir which India claims is illegally occupied territory since 1947-48. This 1,124-Megawatt project was to be developed by the Kohala Hydropower Company Private Limited. Disputes over this project took place in 2019 between Pakistan and China, which they tried to resolve but the Chinese firm refused to accept the dispute resolution plan approved by the government of Pakistan.
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On June 25, 2020, a “tripartite” agreement for implementing the Kohala project was signed between the China Three Gorges Corporation, the government of Pakistan-occupied Kashmir (PoK) and Private Power and Infrastructure Board. The project is likely to cost USD 2.4 billion. International Finance Corporation and Silk Road Fund are also sponsors of this project.
The third hydropower project agreed upon between Pakistan and China was in July 2020 and is at Azad Pattan. It is located on the River Jhelum near the village of Muslimabad in the district of Sudhnoti, in Pakistan-occupied Kashmir (PoK). This will be carried out by the Power Universal Company Limited which is owned and controlled by the China Gezhouba group.
The Indus at the site of the proposed Diamer-Basha dam. Photo: Water and Power Development Authority, Pakistan
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For the government of Pakistan, both the Kohala and the Azad Pattan projects are likely to bring about USD 4 billion in the form of investments, produce around 1800 MW of hydel power and create 8,000 jobs.
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One of the major reasons Pakistan is entering into such a deal is to use the available water efficiently, as the country is experiencing water shortage and its yearly water availability is now less than 1000 cubic meters per person. Through dams, it is trying to manage its water resources, mainly for agricultural purpose on which the country’s economy depends.
Second, Pakistan faces a shortage of electricity. In 2019, the transmission and distribution capacity of Pakistan was stalled at approximately 22,000 MW while the maximum demand from the residential and industrial areas was about 25,000 MW. This implied a deficit of 3000 MW. Hydroelectricity will add to the total electricity generated and will help in reducing the supply-demand deficit.
“For every dollar you invest in nature, you get nine dollars back. So, you get jobs, you get local employment, you get (a) green economy going,” the minister told VOA.
“Even during the COVID era, we created 84,000 jobs for people who were out of jobs,” he added, referring to the coronavirus pandemic that hit Pakistan in February.
The outbreak prompted Prime Minister Imran Khan’s government to introduce nationwide lockdowns to curb the spread of the COVID-19 virus, which has infected at least 315,000 Pakistanis, and resulted in more than 6,500 deaths. New infections, however, have dramatically and steadily declined to several hundred a day since June, encouraging the government to lift all lockdowns.
Khan spearheaded a reforestation campaign, known as Billion Tree Tsunami, in the northwestern Khyber Pakhtunkhwa (KP) province, which his Pakistan Tehreek-e-Insaf (PTI) Party has been governing since 2013.
The four-year program restored 350,000 hectares of forests and degraded land, surpassing its 348,400 hectares commitment to the Bonn Challenge and winning Khan international praise for his climate change efforts.
The Bonn Challenge, established in 2011, calls for the restoration of 350 million hectares of deforested and degraded lands by 2030.
Billion Tree Tsunami program
The Billion Tree Tsunami program generated about 500,000 green jobs for men and women in poverty-stricken remote areas of the scenic Pakistani province. It has established a network of private tree nurseries and boosted local incomes.
The World Wildlife Fund-Pakistan (WWF-P), which monitored and audited the tree-planting effort in KP, reported that the project has been an environmental, economic and social success, with one of the highest survival rates of trees in the world, ranging from 75% to more than 80%.
Officials at the International Union for Conservation of Nature-Pakistan (ICUN-P) hailed the initiative as “a true conservation success story.”
Khan launched the Ten Billion Tree Tsunami program after his party won the July 2018 national election and he became prime minister.
Third-party audit
Last week, the Pakistani government signed an agreement with a consortium of three international organizations for a third-party monitoring and evaluation of the “Ten Billion Tree Tsunami” program from 2020 to 2024.
The consortium comprises WWF-P, the U.N. Food and Agriculture Organization (FAO) and ICUN-P.
FAO deputy representative Farrukh Toirovi described the program as a historic undertaking by Pakistan.
“This is a project which will benefit not only today the people of Pakistan, but also it will be benefiting the people all around the world and the region, and also for the people of the generations to come,” Toirovi said. "We from FAO are interested in this project so that we can take these lessons from Pakistan and try to use it also in other countries.”
Hammad Khan Naqi, director general of the WWF-Pakistan, explained that his organization will evaluate 30% of the plantation sites, 30% for wildlife conservation and 100% percent of the protected areas across the country.
Pakistani officials say the unprecedented third-party monitoring of a government project will ensure impartial “verification, transparency and accountability” of the massive reforestation drive and of the public funds being spent on it.
Authorities say a key part of the project is to curtail activities of the powerful “timber mafia” that for decades has operated in Pakistan unhindered.
The KP provincial government effectively dismantled hundreds of illegal sawmills and arrested timber cutters while implementing the ‘Billion Tree Tsunami’ project there, leaving at least two forest guards dead in such encounters and injuring many more.
https://www.voanews.com/south-central-asia/pakistan-plants-500-million-new-trees-drive-against-climate-change
Aslam noted the tree plantation program is also generating tens of thousands of new employment opportunities and is expected to create about 1.5 million jobs over the next three years when the government will have hit the target of nearly 3.3 billion trees.
“For every dollar you invest in nature, you get nine dollars back. So, you get jobs, you get local employment, you get (a) green economy going,” the minister told VOA.
“Even during the COVID era, we created 84,000 jobs for people who were out of jobs,” he added, referring to the coronavirus pandemic that hit Pakistan in February.
The outbreak prompted Prime Minister Imran Khan’s government to introduce nationwide lockdowns to curb the spread of the COVID-19 virus, which has infected at least 315,000 Pakistanis, and resulted in more than 6,500 deaths. New infections, however, have dramatically and steadily declined to several hundred a day since June, encouraging the government to lift all lockdowns.
Khan spearheaded a reforestation campaign, known as Billion Tree Tsunami, in the northwestern Khyber Pakhtunkhwa (KP) province, which his Pakistan Tehreek-e-Insaf (PTI) Party has been governing since 2013.
The four-year program restored 350,000 hectares of forests and degraded land, surpassing its 348,400 hectares commitment to the Bonn Challenge and winning Khan international praise for his climate change efforts.
The Bonn Challenge, established in 2011, calls for the restoration of 350 million hectares of deforested and degraded lands by 2030.
Billion Tree Tsunami program
The Billion Tree Tsunami program generated about 500,000 green jobs for men and women in poverty-stricken remote areas of the scenic Pakistani province. It has established a network of private tree nurseries and boosted local incomes.
The World Wildlife Fund-Pakistan (WWF-P), which monitored and audited the tree-planting effort in KP, reported that the project has been an environmental, economic and social success, with one of the highest survival rates of trees in the world, ranging from 75% to more than 80%.
Officials at the International Union for Conservation of Nature-Pakistan (ICUN-P) hailed the initiative as “a true conservation success story.”
Khan launched the Ten Billion Tree Tsunami program after his party won the July 2018 national election and he became prime minister.
Third-party audit
Last week, the Pakistani government signed an agreement with a consortium of three international organizations for a third-party monitoring and evaluation of the “Ten Billion Tree Tsunami” program from 2020 to 2024.
The consortium comprises WWF-P, the U.N. Food and Agriculture Organization (FAO) and ICUN-P.
FAO deputy representative Farrukh Toirovi described the program as a historic undertaking by Pakistan.
“This is a project which will benefit not only today the people of Pakistan, but also it will be benefiting the people all around the world and the region, and also for the people of the generations to come,” Toirovi said. "We from FAO are interested in this project so that we can take these lessons from Pakistan and try to use it also in other countries.”
Hammad Khan Naqi, director general of the WWF-Pakistan, explained that his organization will evaluate 30% of the plantation sites, 30% for wildlife conservation and 100% percent of the protected areas across the country.
Pakistani officials say the unprecedented third-party monitoring of a government project will ensure impartial “verification, transparency and accountability” of the massive reforestation drive and of the public funds being spent on it.
Chinese company built over 13 small, mini and micro hydropower plants in Pakistan
https://tribune.com.pk/story/2273568/hydropower-plants-benefit-rural-areas-of-pakistan
Chinese company Chongqing Savvy built more than 13 small, mini and micro hydropower plants in Pakistan as of 2019. Out of this, seven have finished installation and trial run and started generating power in Gilgit. The remaining eight plants are being installed in Khyber-Pakhtunkhwa (K-P).
These small, mini and micro hydropower plants have delivered tangible benefits for the well-being of local people in areas which earlier lacked access to electricity.
Chongqing Savvy Industries CEO George Zhou highlighted that power plants such as these could help electrify rural areas which would lay solid foundation for further modernisation and intelligent development given the renewability of hydropower against coal and gas based energy.
“We built a 1000 kW hydro-power station in Gilgit, which is used to supply electricity to the customs department,” he said. “Once the power is generated, the customs office can operate normally and out plant helps in clearance of items.”
Recalling suitable prerequisites for establishment of small, mini and micro hydropower plants in Pakistan, Zhou said they included abundant water resources, massive demand for electricity and the country’s potential for development.
Talking about the reasons behind his company’s investment in Pakistan, he attributed it to the close relationship between the two countries as well as the supporting facilities and potential market of his company’s products in Pakistan. Zhou added that as a large developing country with a population of over 200 million people, Pakistan still faced a vast gap in supply of power to pave way for industrialisation.
“Being an iron-brother, China is willing to offer technical support in this area,” he said. Besides, CPEC has created opportunities and privileges for small and medium enterprises like the company Zhou works for.
It is hoped that new energy, which is indeed a major trend in the world, could also help Pakistan realise massive development in the years to come.
https://thefrontierpost.com/small-dams-a-harbinger-of-resolving-pakistans-water-woes/#:~:text=The%20small%20dams%20are%20only,of%20natural%20disasters%2C%20he%20said.
Known as the home of longest River Indus (3180km) in Asia, Pakistan is a unique country with plenty of small and big rivers gifted with natural sites for construction of more dams to address the longstanding water woes of the country.
The country has more than 24 big and small rivers including five in Punjab, four in Sindh, eight in Khyber Pakhtunkhwa and seven in Balochistan had numerous suitable natural sites for construction of small, medium and big dams to fulfill the growing water needs of the people.
Pakistan is also the home of rivers Chanab, Jhelum, Ravi, Sutlaj and Beas in Punjab, Kabul, Swat, Punjkora, Kunhar, Bara, Kurram, Haroo, Gomal, Chitral in KP, Nari, Bolan, Pishin, Lara, Mula, Hub, Zhob, Porali, Hangol, Rakshan, Dasht in Balochistan and four rivers in Sindh province.
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These rivers are endowed with a number of potential sites at Diamir Bhasa, Dasu Kohistan, Kalabagh on River Sindh, Mohamad and Kalam on River Swat, Shalman Khyber on River Kabul, Tangi on River Kurram in North Waziristan, Kaghan-Naran on River Kunhar for construction of water reservoirs.
Despite having enormous water potential, Pakistan is gradually moving towards water-scared country where most of living creatures including humans, animals, plants, wildlife, mammals and reptiles are facing the looming threats of water scarcity.
The National Water Policy (NWP) 2018 has revealed that Pakistan was heading towards a situation of water shortage due to lack of water reservoirs, which may lead to food insecurity for all living creatures by 2025.
The policy disclosed that per capita surface water availability has significantly declined from 5,260 cubic meters per year in 1951 to around 1,000 cubic meters in 2016.
This quantity is likely to further drop to 860 cubic meters by 2025, marking Pakistan’s transition from a water stressed country to a water scarce country.
The groundwater situation is expected to further drop in the country mostly in Punjab and Sindh where one million tube-wells are currently pumping about 55 million acres feet (MAF) of underground water for irrigation, which is 20pc more than that available from canals.
Talking to APP, former Ambassador of Pakistan Manzoorul Haq said, “the policy’s findings are alarming. We need to swiftly shift our approach from construction of big dams to small dams that can prove harbinger of self-sufficiency in food and increasing exports of agro-based industries.”
He said water resources were inextricably linked with climate and the impending climate change scenario has posed serious implications for Pakistan’s water resources.
The changing and unpredictable precipitation patterns may have serious consequences, including flash floods in north and increasingly prolonged droughts in the south, he added.
Manzoorul Haq said that the glaciers retreat, more glacial lakes will form, increasing the risk of Glacial Lake Outburst Floods (GLOF) that is already becoming increasingly common and hazardous in northern parts of the country.
The small dams are only remedy to store flood and rainy water mostly in arid areas like Karak, Bannu, Lakki Marwat, Kohat, DI Khan, DG Khan, Bhakkar, Bahawalpur, Multan, Tharparkar besides merged areas of erstwhile Fata to bring maximum dry land under cultivation and minimize impact of natural disasters, he said.
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He said 46,000 dams have been constructed worldwide whereas China has built 22,000 dams and India 4,500 dams.
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Mujahid Saeed, Director General Small Dams Irrigation Department said feasibility studies and designs of 26 small dams having 166,282 cultivable command area and 555,103 acres feet storage capacity, has been either completed or practical work in progress in different districts of KP.
https://nation.com.pk/01-Mar-2021/govt-releases-rs63-978-21-million-for-water-projects-so-far
An amount of Rs16,000 million has been allocated for Diamer Basha Dam (Dam Part), Rs5,000 million for Diamer Basha Dam Project (Land Acquisition and Re-settlement), Rs1,443.324 million for Balochistan Effluent Disposal in to RBOD, Rs1,968 million for construction of Basool Dam, Rs1,797 million for construction of Mangi Dam, Rs2,000 million for construction of small storage dams (Sindh), Rs1,500 million for construction of 100 small dams in Balochistan, Rs1,356.346 million for Darwat dam and Rs2,000 million for Garuk Storage Dam. A sum of Rs7,000 million has been earmarked for Mohmand Dam, Rs3,000 million for Nai Gaj Dam, Rs2,500 million for Naulong Storage Dam, Rs1,500 million for Normal/Emergent Flood Programme and Rs3,000 million for construction of Winder Dam. Similarly, Rs2,000 million has been allocated for Kachhi Canal Project (Remaining Works), Rs500 million for construction of 100 dams in Balochistan and Rs30 million for construction of Delay Action Dam at Zarkhune (Quetta).
https://nation.com.pk/11-Nov-2021/wapda-executing-projects-worth-dollar-26-billion-says-chairman
WAPDA Chairman Lt Gen Muzammil Hussain (retd) highlighted this in the meeting with a delegation of JP Morgan comprising senior representatives namely Asif Raza, Managing Director Global Corporate Bank CEEMEA, Imran Zaidi, Managing Director Global Corporate Bank covering Middle East and North Africa (MENA) and Amin M Khawaja, Chief Executive Officer Pakistan. WAPDA Member (Finance) Naveed Asghar was also present on the occasion.
Giving a run-down of 10 under construction WAPDA projects, the chairman said that these projects would enhance water storage capacity by more than 11 MAF and add another 9,000 MW of hydel electricity to the system. WAPDA has unparalleled institutional capacity to identify and implement multipurpose hydropower projects. It has adopted a multi-pronged strategy including Green Eurobonds and Syndicate loans etc for implementation of its projects. This was a radical shift from entire reliance on the Government of Pakistan. WAPDA’s business model has an important role to play in the development of a sustainable and lower-carbon economy in Pakistan, he said. The chairman said that WAPDA would continue to approach the international financial and capital market in a staggered mode, to minimise financing cost, in line with its financing requirements and would look forward to bring further investments in the hydropower sector which would go a long way to reduce carbon footprint in the power generation sector of Pakistan. He appreciated the role played by JP Morgan as the lead arranger for WAPDA’s debut Green Eurobond issuance alongside Deutsche, Standard Chartered and HBL Bank.
https://www.fitchratings.com/research/international-public-finance/fitch-affirms-pakistan-water-power-development-authority-at-b-outlook-stable-14-03-2022
WAPDA is established under a special statute. The Authority has close operational and administrative linkage to the government and is mandated to develop water and power resources in Pakistan. The government exercise strong influence over WAPDA's corporate governance and debt, sanctioned by the government, shall be transferred to the government according to the Pakistan Water and Power Development Authority Act.
KEY RATING DRIVERS
Status, Ownership and Control: 'Very Strong'
Our 'Very Strong' assessment of 'Status, Ownership and Control' remains unchanged, given the strong statutory support, stable government ownership - which we do not expect to change - and high level of government control. Employees of WAPDA are deemed to be public servants when acting in pursuance of WAPDA activities. The government has strong influence on WAPDA's corporate governance, including budget, accounts, financing activity and new power station investment plans, because the Authority is mandated to execute the government's responsibility of utilising Pakistan's water and power resources.
Support Track Record: 'Very Strong'
The build-up of circular debt in the energy sector exposes WAPDA to external funding. The government aims to mitigate the circular debt issue by providing financial support; it had guaranteed 22% of WAPDA's interest-bearing debt as of June 2021 and 56% of the debt comprises of government loans. The government will be liable for loans passed by the Authority with the sanction of the government under the WAPDA Act. Supportive policies, such as corporate tax exemptions, land acquisitions and a tariff mechanism, also enhance WAPDA's operational stability.
Socio-Political Implications of Default: 'Strong'
Pakistan's policies aim to boost the hydropower generation mix and reduce reliance on fossils. WAPDA's hydropower generation accounted for 27% of the generation mix in 2021, while other renewable energy only accounted for 3%. The government aims for hydro power to contribute over 40% of Pakistan's energy demand by 2030, implying that the development of hydropower generation is of significant strategic importance to the country. We believe WAPDA's installed capacity would be difficult to substitute and that any transition process would lead to severe service disruption.
Financial Implications of Default: 'Very Strong'
We deem WAPDA as a proxy financing vehicle for the government in the energy sector. The Authority still relies on the government to fund its investments, although it is expanding its borrowing capacity, including via recent bond issues. We believe the government's borrowing ability would be significantly impaired if WAPDA come under financial stress due to the high level of funding it receives from international development finance institutions and its debt mix - 78% of interest-bearing debt comprised loans or was guaranteed by the government.
Derivation Summary
WAPDA's ratings reflect our assessment of government linkage and support incentive and results in a weighted score of 50, based on our Government-Related Entities Rating Criteria. We adopt a top-down approach and equalise WAPDA's rating with those of Pakistan (B-/Stable), regardless of WAPDA's Standalone Credit Profile.
Development sector professional Umer Karim talks about the energy and water crisis looming over the country.
Farahnaz Zahidi
https://scroll.in/article/1026969/interview-at-the-root-of-pakistans-water-crisis-is-mismanagement-of-resources
More than 80% of the population in Pakistan faces severe water scarcity. Without change, this is projected to increase. With the water crisis looming over the country, Umer Karim, a development sector professional, sat down with The Third Pole.
Karim has been working in the field of irrigation and water management for more than 20 years and is a consultant with public and private sector organisations, as well as a regular guest speaker and media commentator.
Can you explain the debate around dams in Pakistan?
In 2010, all the provinces had a consensus on the Diamer Bhasha dam [a dam being built in northwest Pakistan, which will be one of the highest in the world when finished]. However, now the project is taking a lot of flak. It is difficult to understand why they signed the agreement if it is now believed that we will suffer and dry up as a result.
Some people propose that small dams should be built in provinces. Please invite them to visit Chotiari reservoir, a small dam built on the Nara Canal in Sindh in 1996. No doubt it is very helpful and caters to the needs of downstream areas of Umerkot and Tharparkar whenever there is a shortage of water.
But people living near the banks of this dam are badly affected by waterlogging, salinity and land degradation. Small dams may be valuable in sustaining communities, but they need proper operation and maintenance plus remedial measures for waterlogging and seepage.
Usually, dams are built in areas where issues of waterlogging and salinity are expected to have the least impact. Tarbela dam, for example, recharges the area’s water tables and keeps them fresh.
Among people interested in the environmental pros and cons of hydropower, there are plenty of discussions, but technical or scientific research or data is not included. The narrative around hydros, therefore, remains superficial.
This year, we did not have water [stored in] dams. Tarbela was emptied for repair work on its tunnels during the dry – winter – period, and Mangla had to provide support for those areas in Pakistan’s upper reaches. We are essentially on a direct natural flow of the river, which remained lower than average due to low temperatures at glaciers, and this created multiple problems, especially for lower riparian areas.
https://www.businesswire.com/news/home/20230306005420/en/POWERCHINA-Celebrates-10th-Anniversary-of-CPEC-Committed-to-Bringing-Pakistan-Forward-for-Green-and-Sustainable-Development
This year will see the 10th anniversary of the China-proposed Belt and Road Initiative (BRI) and the 10th anniversary of the launch of the China–Pakistan Economic Corridor (CPEC). As one of the key enterprises participating in the construction of the CPEC, POWERCHINA has been active in various fields such as energy, electricity, water management, and infrastructure investment in Pakistan since it entered the Pakistani market as early as 1987.
Over the past 36 years, POWERCHINA has completed the 103 projects in Pakistan, including the first roller-compacted concrete (RCC) dam in Pakistan – the Gomal Zam Dam multipurpose project, and the first mainstream hydropower station on the Indus River – the Ghazi-Barotha Hydropower Project, the largest installed hydropower station – the Tarbela 4th & 5th Extension Hydropower Project, and the largest wind farm – the Tricon Boston 150 MW Wind Power Project.
In the past ten years, among the first 20 energy and infrastructure projects of the CPEC, POWERCHINA has participated in the investment and construction of 11 projects. POWERCHINA has consolidated the traditional power business, and continued to contribute to the development of new energy and other fields. Pakistan's largest hydropower hub project currently being constructed by POWERCHINA, the Diamer Basha Dam Project, will become the tallest and largest RCC dam in the world, and is expected to provide Pakistan with 18.1 billion KWh of clean electricity every year. As the project progresses, it is expected to provide more than 20,000 job opportunities, which is considered as one of the many positive effects of the project by Nadeem Ilyas, a Pakistani engineer of the project.
As one of the leading enterprises in China, POWERCHINA has carried out high-quality clean energy project construction and operation in accordance with international standards, and is committed to improving Pakistan's infrastructure conditions and alleviating local power shortages. It has not only made important contributions to the sustainable development of Pakistan, but also played a key role in the development of CPEC.
https://www.dawn.com/news/1746406/saudi-arabia-signs-240m-loan-agreement-to-support-mohmand-dam
The statement noted that the project is expected to enhance water and food security, and improve the standard of living for people in Khyber Pakhtunkhwa, where almost 80 per cent of the population resides in rural areas, boosting the region’s socioeconomic development by creating employment opportunities and reducing poverty levels.
It added that by using renewable energy sources, the project will generate 800 MW of electricity production capacity, contributing to Pakistan’s energy security. In addition, the storage of 1.6 million cubic meters of water will support sustainable agricultural practices, enable irrigation of 6,773 hectares of new land, and increase the total cropping area from 1,517 hectares to 9,227 hectares in the province, facilitating agricultural activities.
Co-financed by the SFD, OPEC, Islamic Development Bank, and the Kuwait Fund for Arab Economic Development, the project aligns with SDG-2 (Food Security), SDG-6 (Clean Water), and SDG-7 (Clean Energy) and embodies SDG-17 (Partnerships for the Goals).
During the agreement signing ceremony, the CEO of SFD said this initiative is an extension of the fund’s continued support for development projects and programmes in Pakistan since its inception. He also highlighted the significance of joint cooperation between development funds, as evidenced by this project.
For his part, Dr Niaz expressed his sincere appreciation and gratitude to the Kingdom of Saudi Arabia for its unwavering support towards the development sector in Pakistan through the SFD.