CDWP approves one energy project, recommends three to ECNEC

ISLAMABAD: After taking decision to defer evacuation of power from 2160MW Dasu Hydro Power Project with revised cost of Rs132.24 billion mainly because of some technical reasons, the Central Development Working Party (CDWP) on Wednesday approved one project and recommended three energy projects with estimated cost of Rs122.128 billion to Executive Committee of National Economic Council (ECNEC).

Out of three energy projects for KP with total cost of Rs122.128 billion, the World Bank (WB) will provide a loan of $450 million. The CDWP decided to defer evacuation of power from Dasu project because of some technical observation raised during the meeting so decision was taken to rectify the technical hitches and then the project will be cleared in next CDWP meeting, said the official sources.

The project is evacuation and transmission of power from 2160MW from Dasu Hydro Power Project to respective load centers and Discos by construction of 765kv double circuit transmission line from Dasu project to Islamabad through Mansehra. According to financial analysis, the life of the project has been assumed for 30 years and total cost of the project is estimated at Rs132.249 billion including interest during cost (IDC) of Rs13.709 billion. For financial analysis, the IDC has been excluded. The fixed use of system charges for at Rs176.13 per KW per month has been used. The transmission losses has been assumed at 3 percent. The CDWP meeting presided over by Deputy Chairman Planning Commission Mohammad Jehanzeb Khan considered three projects presented by KP government for energy sector with estimated cost of Rs122.128 billion.

First project related to Energy namely “Hiring of Planning Consultants and management Support Consultants for Energy Sector Development and Institutional Strengthening under the World Bank Assisted KP Hydropower & Renewable Energy Development Programme” worth Rs5775 million was approved in the meeting.

The objective of the project is to prepare plans, feasibility studies/design studies through Planning Consultants, Institutional Strengthening through Management Support Consultants and capacity building of PEDO/Energy & Power Department KP.

Second project of Energy Namely “Construction of 157MW Madian Hydropower Project, District Swat, under the World Bank assisted Khyber Pakhtunkhwa Hydropower & Renewable Energy Development Program (KPHREDP)” worth Rs79798.00 million was referred to ECNEC for further approval. The main object of this project is to construct 157MW Madian Hydropower project on Swat River. The project will generate 767.59GWh of affordable energy annually to make a value addition in generation capacity in the power network of KP and the country.

The third project of Energy titled “Construction of 88MW Gabral Kalam hydropower project” worth Rs36555.25 million was referred to ECNEC for further approval. The project will generate 339.19GWh of affordable energy annually to make a value addition in generation capacity in the power network of KP and in the country.

The CDWP also approved a project namely “Disaster Climate Resilience Improvement Project AJK” worth Rs. 3629.820 million which is also funded through WB share of $347 million. The forum also considered “Evacuation of Power from 2160MW Dasu Hydropower Project (Stage-1)” and “Pakistan Goes Global” but these projects were not cleared due to technical observations, hence decided to be discussed in next meeting.