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Money Matters

Small dams impasse

By Magazine Desk
Mon, 06, 15

The insensitivity and indifference of successive governments towards development of small and medium dams, termed of critical importance to increase water availability in the related areas, has deprived the nation of numerous economic and social benefits for long.

The insensitivity and indifference of successive governments towards development of small and medium dams, termed of critical importance to increase water availability in the related areas, has deprived the nation of numerous economic and social benefits for long. It is indeed a criminal neglect on the part of the government, in particular the Ministry of Water and Power, especially in the backdrop of fast depletion of the country’s water resources. Ironically, Federal Minister Khawaja Asif has warned of severe water crisis in coming years but has failed to take any practical steps to address the challenge.

In all, thirty-two (32) small and medium dams were proposed for construction, phase-wise, during the period 2010-2020. The lack of interest on the part of the government to effectively monitor the progress ensuring timely implementation of the projects, and, at the same time, non-release of necessary funds have caused inordinate delays in construction of a number of dams and launching of the others. There seems to be no improvement in the situation in the near future either since the 2015-16 Budget proposals is focused on mega infrastructure projects only, and funds for small dams are not likely to be released next year too.

The twelve (12) multipurpose dams were identified in the first phase for construction in Balochistan, Sindh, Punjab and Khyber Pakhtunkhwa in 2010, all to be completed within three years. Engineering studies and feasibility reports of these projects were finalized sometime in 2007-08, and the Executive Committee of the National Economic Council (ECNEC) had approved PC-1 for these schemes in September 2009. Total cost of these projects was around one billion dollars at that time. Consequently, the Chinese government has extended $ 700 million in August 2009, while the rupee component was to be provided for the purpose by the government of Pakistan. Tenders were issued for six projects in 2009-10.

It is however a sad story that not a single project could achieve completion within the time schedule. Current status of these projects is far from satisfactory. Only two dam projects in Sindh are in advanced stages of completion, while physical work on most of the other projects has not yet even started. Construction of Darawat Dam (District Jamshoro) and Nai Gaj Dam (District Dadu) was taken in hand by consortia of foreign and Pakistani contractors in 2010 and 2011, respectively. The scope of works included main dam embankment, spillway, inlet & outlet works, canal irrigation system, power station, allied equipment, structures and civil works. Both projects suffered long delays and cost overruns.

Till date Darawat Dam has achieved 97 percent overall physical progress and 66 percent progress in financial terms. Likewise, Nai Gaj Dam, which was scheduled for completion last year, could achieve 43 percent physical progress so far. Meanwhile, cost of these two projects has escalated to alarming proportions--- three to four times within a period of three years or so. Darawat Dam project was approved at Rs 3.175 billion, later revised to Rs 8.732 billion, again revised to Rs 9.300 billion and project cost may further increase on its completion. Original cost of Nai Gaj Dam project was Rs 14.433 billion, which was revised to Rs 16.925 billion and later to Rs 26.236 billion while another revision of PC-1 is in process and cost is estimated to go up to Rs 63.053 billion.

More intriguing is the escalation in overall cost of the projects that are still on paper. Ghabir Dam (near Talagang) and Papin Dam (District Rawalpindi) are to be constructed in Punjab, but have not taken off as the revised PC-1 for the two projects have not yet been approved. Original project cost of Ghabir Dam at Rs 1.130 billion has been revised to Rs 9.154 billion and that of Papin Dam from Rs 2.012 billion to Rs 8.609 billion. Tenders for the two projects will be issued on PC-1 approval and availability of funds.

The fate of projects in Khyber Pakhtunkhwa is no better. There are three dams proposed for construction in the province which include Darban Dam (near Dera Ismail Khan), Bara Dam (Khyber Agency) and Tank Zam Dam (South Waziristan Agency). Work on these projects could not be started due to poor law and order situation in the areas. Cost of Darban Dam has been revised from Rs 2.750 billion to Rs 5.828 billion and another revision is in hand. Likewise, Bara Dam project original cost Rs 14.210 billion is now under revision. PC-1 for Tank Zam Dam costing Rs 59.426 billion has yet to be finalized for submission to the Planning Commission.

Five projects were launched in Balochistan, including Winder Dam (District Lasbela), Hingol Dam (District Lasbela), Naulong Dam (District Jhal Magsi), Pelar Dam (District Awaran) and Garuk Dam (District Kharan). However, none of the projects has kick-started for a variety of reasons including security concerns. Original cost of Winder Dam as per PC-1 was Rs 1.696 billion, which was later revised to Rs 8.064 billion, and now to Rs 12.412 billion. Tenders were invited in January 2014 but no decision could be made since the latest PC-1 has not yet approved. Cost of Hingol Dam has been escalated from Rs 21.000 billion to Rs 26.463 billion.

Pelar Dam and Garuk Dam cost has already increased from approved Rs 1.692 billion to Rs 8.740 billion, and from Rs 1.790 billion to Rs 6.850 billion, respectively.  Tenders for Naulong Dam were invited and bids opened in April 2010 but there was no headway due to non-availability of funds. Tenders were re-invited in July 2013, four bidders having participated, but no decision could be taken to award the contract. Meanwhile, the project cost increased from Rs 11.700 billion to Rs 18.028 billion to Rs 26.250 billion to latest Rs 31.961 billion. There seems to be no justification of these cost revisions except poor planning and mismanagement on the part of the executing agency WAPDA.

Small and medium dams are being developed in remote areas for extended irrigation of agriculturally developed land as well as creating new irrigated areas through storage and conservation of flood water resources. Other objectives of these projects on completion are drinking water supply, hydropower generation, fisheries development, flood protection and groundwater recharge, whereas numerous socioeconomic benefits include tourism, infrastructure development and improved living conditions.

The combined gross storage of these twelve dams will be 2.9 million acre-foot (MAF) or over 700 billion gallons of water that would enable irrigating about 400,000 acres of land under conventional flood irrigation means. Another special feature of these projects is the electricity, to the cumulative installed capacity of over 43 MW, which would be made available to these far-flung areas without connecting to national grid.

The writer is Chairman of The Institution of Engineers, Pakistan