ISLAMABAD: On the directives of the Supreme Court of Pakistan, the Implementation Committee for Diamer-Bhasha and Mohmand dams (ICDBMD) is contemplating upon different options, including recommending ‘innovative ideas’, such as floating of bonds, sukuks, deduction of two days salaries of all officers and one day salary from all staffs of public sector employees as well as collection of funding through grants and cheapest loans from international donors to materialise projects in shortest possible time.
The ICDBMD comprising top bureaucrats and technocrats from federal, provincial and departmental levels has been mandated to finalise recommendations for construction of Diamer Basha and Mohmand dams. The ICDBMD has also constituted different subcommittees on resource generation, dispute settlements and security to firm up proposals and another important meeting is scheduled to be held tomorrow (Friday). The ICDBMD is all set to lay down its finalised recommendations before the chief justice on July 24, 2018.
Although, many are criticising that it is not domain of judiciary to generate resources for dams but insiders say that this move can give big push to construction of such big dams and no one can deny from importance of such initiatives.
Total cost for construction of Diamer-Basha dam has been estimated at Rs474 billion for portion of the dam only (installation of power turbines and plant is not included in it) out of which the government allocated Rs232 billion through public sector development programme (PSDP) so remaining required amount for construction of this much awaited hydropower projects stands at Rs242 billion. For Mohmand dam, the total required cost stands at 305 billion out of which the federal government allocated Rs114 billion and remaining amount of Rs191 billion will be required to construct this dam.
The high-powered committee having full backing of the apex court has so far evolved consensus after holding deliberations that these dams could not be constructed on reliance of traditional resources and the only viable option would be exploring innovative ways and means to finance these multibillion dollar projects. In this regard, the committee is of the view that the bonds and sukuks could be launched to generate the resources. In case of dependence only on the PSDP and national exchequer from the kitty, these dams cannot be constructed. The committee also recommended that the allocated resources should be diverted into dedicated account for construction of these dams, so such projects should not depend on releases from the Ministry of Finance.
The ICDBMD is also considering slapping additional tax on fluent and rich segment of the society. One idea was floated for imposing Rs1,000 along with token fee on vehicles of over 1,000cc.
The committee is also considering recommending the apex court for ensuring sequencing of these projects by giving big push to the Diamer Bhasha Dam for construction on priority basis, and then go ahead with the Mohmand Dam. The committee was told that the Mohmand Dam will have water storage capacity of 0.645 million acre feet while the Bhasha Dam will have water storage capacity of 6.4MAF so priority should be given to the Bhasha Dam.
The committee also considered to recommend all private sector companies, employees of all businesses and others to contribute for such mega projects. The banks and giant companies may be asked to provide 1 per cent amount before payment of tax amounts.
The committee is of considered view that the contribution from general masses into dedicated accounts may not fetch heavy amount, but it is good that people can contribute which will give them sense of participation for construction of such massive hydropower projects in future.
