Ahsan concerned over delay, cost escalation in Diamer Basha Dam project

The Federal Minister for Planning, Development and Special Initiatives and Deputy Chairman of the Planning Commission of Pakistan, Professor Ahsan Iqbal on Thursday chaired a meeting of the Central Development Working Party (CDWP).

A revised project related to the Ministry of Water Resources Pakistan, namely “Diamer Basha Dam Project – Dam Part with Reflection of Helicopter Cost,” worth Rs 485.006 billion, came under discussion and was referred to the Executive Committee of the National Economic Council (ECNEC) for further consideration, a news release said.

While discussing the Diamer Basha Dam project, Ahsan Iqbal expressed serious concern that the revised PC-I of the project had not been submitted during the last six years despite a manifold increase in the project cost from the originally approved cost of Rs 480 billion in 2018, which reflected poor project management capacity.

He directed the new chairman of Water and Power Development Authority of Pakistan to ensure that the project was managed in a professional manner.

He further observed that concerns regarding the escalating cost of the project had repeatedly been raised during Standing Committee on Planning meetings since 2020. However, despite the passage of several years, WAPDA had still not submitted the revised PC-I.

He emphasized that these reservations should be made part of the official record.

The CDWP allowed revision of the PC-I related to helicopter procurement purely on security grounds and directed that the revised PC-I for the dam component should be submitted without further delay.

The deputy chairman further questioned whether a holistic, integrated and professional project design and management system for mega projects existed in WAPDA.

“WAPDA should undertake necessary steps to improve its project management capacity,” he added.

After detailed discussion, the forum also referred another revised project, namely “Tarbela 5th Extension Hydropower Project,” worth Rs 316.411 billion, to ECNEC for further consideration.

While discussing the project, Ahsan Iqbal expressed serious concerns over its management, transparency and oversight mechanisms.

He observed that the professional capability of the concerned staff appeared questionable, as the Ministry of Water Resources had also pointed out shortcomings in its inquiry report.

The minister questioned the process through which a local consultant with a dubious record was engaged for the project, stating that an international consultant had initially been hired and was subsequently replaced by a local company in a non-transparent manner.

He directed the concerned authorities to share the inquiry report with the ministry for detailed review.

Highlighting the financial implications of the project, the minister noted that it was originally estimated at Rs 82 billion, whereas expenditures had already crossed Rs 140 billion.

He further directed that all observations regarding mismanagement, weak due diligence, and the performance of contractors and consultants be formally placed before ECNEC by an inquiry committee headed by Member Infrastructure.

He directed the committee to thoroughly examine these issues, review the observations raised during the meeting, and submit a comprehensive report to ECNEC.

He also directed the authorities concerned to develop a robust institutional framework to prevent such shortcomings in future projects, emphasizing that organizations like WAPDA must uphold the highest standards of professionalism, accountability and project governance.