Way clear: Afghanistan drops objection to Dasu Dam

The Suki Kinari hydropower project will be completed in 2020 and inject 3,081 million clean, reliable and affordable units of electricity each year into the national grid and will be of great help in meeting future electricity needs. PHOTO: FILE

ISLAMABAD: 

Afghanistan has withdrawn its objection to 4,300-megawatt Dasu dam and power project as it is going to be set up on the river that is entirely in Pakistan’s territory.

Federal Minister of Water and Power Khawaja Muhammad Asif stated this here on Friday while speaking at a ceremony marking the signing of an implementation agreement between the Private Power and Infrastructure Board (PPIB) and SK Hydro (Private) Limited.

Under the deal, the two sides will develop the 870-megawatt Suki Kinari hydropower project at a cost of $1.8 billion in Mansehra district, Khyber-Pakhtunkhwa.

The ground-breaking ceremony of the project will be held on May 15. Prime Minister Nawaz Sharif will kick off the construction work.

PPIB Managing Director NA Zuberi and SK Hydro CEO Haseeb Khan inked the implementation agreement on behalf of their respective sides. Water and Power Secretary Saifullah Chattha and senior PPIB officials were present.

Talking to the media, Asif said the government was taking all possible steps to generate cheap electricity from domestic resources like coal, wind, solar and hydel.

He said the public sector was setting up the Dasu Dam and had also arranged necessary financing.
The World Bank is likely to approve a loan of $4.5 billion for the
project in a meeting to be held on May 29.

Responding to a question about the setting up of two power projects in the public sector, he said the response of investors to the Gadani Power Park was very encouraging and now the government was considering establishing all 10 projects of 660MW each in the private sector.

Asif pointed out that China was keen to set up power projects of 20,000MW capacity in Pakistan and after completion of all projects, load-shedding would come to an end.

He was of the view that because of the policies of the government and encouraging response of the international community to the Eurobonds floated by Pakistan, the government would not face financing problems while implementing Bhasha, Bunji and Thakot power projects.

The Suki Kinari hydropower project will be completed in 2020 and inject 3,081 million clean, reliable and affordable units of electricity each year into the national grid and will be of great help in meeting future electricity needs.

Furthermore, the government of Khyber-Pakhtunkhwa will earn approximately Rs470 million per annum on account of water charges. After 30 years of operation, the project will be transferred to the province without any cost.