Comment by Riaz Haq on July 3, 2015 at 8:31am

The owner of the world’s largest hydroelectric dam, China Three Gorges Corporation, is willing to participate in a financing consortium to fund up to $50 billion of hydroelectric power projects in Pakistan.

The Chinese government-owned CTG expressed an interest in financing projects in Pakistan in conjunction with the International Finance Corporation, a World Bank subsidiary. This disclosure was made at the meeting of the Cabinet Committee on Energy on June 18. The offer comes on top of the $46 billion in financing for power and transportation infrastructure being provided by the Chinese government and Chinese banks to Pakistan for the construction of the China-Pakistan Economic Corridor (CPEC).

If the offer pans out, it would make China the biggest financier of infrastructure in Pakistan by far. CTG owns and operates the Three Gorges Dam, the world’s largest hydroelectric power plant with a capacity of 22,500 megawatts, nearly matching in one power plant the entire installed capacity of the Pakistani grid of 23,500 MW.

Read: China-Pakistan Economic Corridor: Lines of development – not lines of divide

According to studies conducted by the Water and Power Development Authority, Pakistan has an identified potential of producing up to 60,000 MW of hydroelectric power, of which 40,000 MW is located in a region called the Indus Cascade, which begins in Skardu in Gilgit-Baltistan and runs through to Tarbela, the site of Pakistan’s biggest dam, in Khyber-Pakhtunkhwa.

The biggest project the government has already identified and begun preliminary work on is the Diamer Bhasha dam, which would require $15 billion to construct and would have a nameplate capacity of 4,500 MW.

Pakistan’s energy sources have gone through cycles. Up until the 1980s, the bulk of electricity in Pakistan came from hydroelectric power. In 1994, as the country’s energy needs surged, the government initiated a policy to attract private investment in thermal electricity. Oil prices were low in that decade and so the government made the decision to use oil-fired power plants, a decision that proved costly when oil surged to $100 a barrel, prompting Islamabad to search for cheaper ways of producing electricity. Among those cheap ways is hydroelectric power and coal-fired thermal electricity.

Among other projects the government wants to seek Chinese financing for is the Neelum-Jhelum power project in Azad Kashmir. The 969 MW Neelum-Jhelum hydroelectric power project has been facing rising costs, mainly due to the delays caused by a lack of funding. The project was initially slated to cost $1.8 billion, but will now cost $4.2 billion due to the delays, a major cause of concern for its initial consortium of Middle Eastern financiers which included the Islamic Development Bank (IDB), the Kuwait Fund for Development (KFD), the Saudi Fund for Development and the OPEC Development Fund.

The government now expects to raise Rs100 billion ($1 billion) in local borrowing for the plant, in addition to $576 million in foreign borrowing. The government has approached the state-owned National Bank of Pakistan to arrange financing for the local currency component. The Middle Eastern lenders have so far committed $692 million, of which they have disbursed $260 million so far.

“The disbursement of the remaining $433 million has been stopped by the lenders as they are demanding that the contractors should provide performance guarantee for the additional work (variation orders) and cost escalation,” said one source familiar with the cabinet’s deliberations on the matter.


http://tribune.com.pk/story/913964/china-firm-offers-50b-for-hydro-...

Comment by Riaz Haq on July 24, 2015 at 8:19am

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.

http://www.hydroworld.com/articles/premium-content/2015/07/pakistan...

Comment by Riaz Haq on March 10, 2017 at 10:10am

Contract to build Dasu Dam with 4,325 MW power and 1,410 million cubic meter water storage awarded to a Chinese firm. 

Here's a China Daily report:

China has contracted to build a hydroelectric power project in Pakistan, with the first phase of investment reaching $2.5 billion.

China Gezhouba Group Co Ltd has agreed to invest more than $1.72 billion for the construction of the main works of the 5,400MW Dasu hydropower project in the country, cooperating with the local water and power development authority, the company said on Thursday.

According to Deng Yinqi, vice president of CGGC, a member company of the China Energy Engineering Corporation, the construction of the hydropower project is a significant milestone in Chinese construction going global.

Deng said: "CGGC has been involved with Pakistani construction works for years and the company is committed to continuously contributing to the local economy."

According to CGGC, the power project, situated in remote mountainous terrain in the Upper Indus valley in the district of Kohistan, in the Khyber Pakhtunkhwa province in northern Pakistan, is one of the most challenging hydroelectric power projects ever undertaken.

On completion it should be capable of generating 12 billion kilowatt hours annually, the company said.

The Chinese operator said the project would provide more than 8,000 jobs to local residents while helping the Pakistan government modernize and expand the energy sector of the country, shifting from thermal generated electricity to clean, low-cost high reward hydroelectricity.

The project, consisting of the main dam, affiliated facilities, a powerhouse, a residential complex and transmission lines, will also help boost the development of local industry, agriculture and tourism.

Chinese companies have branched out beyond their borders in recent years to become the biggest builders of hydropower projects worldwide, exporting its hydroelectric power know-how to developing countries.

Hydroelectricp projects require huge investment involving complex issues, especially when investing in projects overseas.

On the other hand, China's investment in clean energy would help reduce pollution, said Joseph Jacobelli, a senior analyst with Asia utilities and infrastructure research at Bloomberg Intelligence.

http://africa.chinadaily.com.cn/business/2017-03/10/content_2850278...

Comment by Riaz Haq on May 15, 2017 at 10:43pm

#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-... 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.

Comment by Riaz Haq on May 15, 2017 at 10:43pm

#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-... 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.

Comment by Riaz Haq on May 15, 2017 at 10:44pm

#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-... 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.

Comment by Riaz Haq on May 15, 2017 at 10:44pm

#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-... 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.

Comment by Riaz Haq on May 15, 2017 at 10:44pm

#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-... 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.

Comment by Riaz Haq on May 18, 2017 at 7:23am

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

https://swarajyamag.com/insta/china-pakistan-plan-for-construction-...

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.

Comment by Riaz Haq on July 4, 2018 at 4:08pm

Work on Tarbela 5th extension adding 1,410MW to national grid to begin this year

https://dailytimes.com.pk/261826/work-on-tarbela-5th-extension-addi...

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.

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