Status_of_Government_Planning.pdf

IQC 391 – I – 11 – 00003

AID – 391 – 14 – 00001

STATUS OF GOVERNMENT PLANNING AND APPROVAL DOCUMENTS

Data Collection, Review and Preparation of International Tender document for the Diamer Bhasha Dam Project

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Disclaimer:

This Project is made possible by the support of the American people through the United

States Agency for International Development (USAID). The opinion expressed herein are those of the author(s) and do not necessarily reflect the views of USAID, A. A. Associates or

Techno-Consult International.

STATUS OF GOVERNMENT PLANNING AND APPROVAL DOCUMENTS

Data Collection, Review and Preparation of International Tender document for the Diamer Bhasha Dam Project

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Data Collection, Review and Preparation of International Tender document for the Diamer Bhasha Dam Project

STATUS OF GOVERNMENT PLANNING AND APPROVAL DOCUMENTS

Prepared by : Tahira Siddiqui

Revised by : -

Approved by : Azher uddin Khan

STATUS OF GOVERNMENT PLANNING AND APPROVAL DOCUMENTS

Data Collection, Review and Preparation of International Tender document for the Diamer Bhasha Dam Project

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Data Collection, Review and Preparation of International Tender document for the Diamer Bhasha Dam Project

STATUS OF GOVERNMENT PLANNING AND APPROVAL DOCUMENTS

Table of Content

1.0 THE PROJECT

2.0 SUMMARY OF GOVERNMENT PLANNING AND APPROVAL DOCUMENTS

3.0 PROGRESS IN PROJECT PLANNING AND DEVELOPEMENT

3.1 ORIGIN OF WATER & POWER DEVELOPMENT IN PAKISTAN, (1947 - 1979)

3.2 MOU BETWEEN GOP AND CANADA, 1980

3.3 PC-II PROFORMA, 1989

3.4 PC-II PROFORMA FOR STAGE - I, 2000

3.5 PC-II PROFORMA FOR STAGE - II, 2003

3.6 PC-II (REVISED) FOR STAGE - II, 2007

3.7 PC - I PROFORMA OF AQUISITION OF LAND & RESETTLEMENT, 2008

3.8 PC - I PROFORMA OF KKH RELOCATION, 2008

3.9 PC - I PROFORMA OF DIAMER BHASHA DAM PROJECT (DBDP), 2009

3.10 MOU WITH PIR MEHR ALI SHAH- ARID AGRICULTURE UNIVERSITY RAWALPINDI (PMAS-AAUR)

3.11 MOU WITH KARAKORAM INTERNATIONAL UNIVERSITY (KIU), GILGIT

STATUS OF GOVERNMENT PLANNING AND APPROVAL DOCUMENTS

Data Collection, Review and Preparation of International Tender document for the Diamer Bhasha Dam Project

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1.0 THE PROJECT

The Diamer Basha Dam is located on upper Indus River some 315 km upstream from Tarbela dam and about 40 km downstream of Chilas Town in Northern Areas, now Gilgit Baltistan.

Geographically, the proposed Project is located between Longitude 73o to 75o E and Latitude 35o to

36o N and bounded by districts of Kohistan, Diamer, Gilgit and Chitral lying in south, east, north and west, respectively. In its finally proposed configuration, it envisages the construction of a Roller

Compacted Concrete (RCC) gravity dam and the allied appurtenant structures on the Indus River.

The proposed dam will impound 15% of the annual river flow. The DBDP will provide 7.9 billion cubic meters (BCM) or 6.4 million acre feet (MAF) of utilizable storage and an installed capacity of

4,500 MW yielding about 18,100 GW h annually. An additional annual energy of about 1100 GWh will also be generated at Tarbela due to its conjunctive operation with Diamer Basha reservoir.

2.0 SUMMARY OF GOVERNMENT PLANNING AND APPROVAL DOCUMENTS

The Government of Pakistan (GOP) started a process to formulate a comprehensive programme for development of water storages and hydropower generation so as to cater for the country’s future needs. For this purpose a Memorandum of Understanding (MOU) was signed in 1980 between the

Government of Pakistan (GOP) and Canada for undertaking ranking studies of potential storage and hydropower sites on Indus, Jhelum and Swat rivers so as to identify cost effective sites and focus on one most suitable sites for development and implementation on priority basis. The

Inventory and Ranking Study submitted by Monenco in November 1982 concluded that the first-ranked project providing both storage and power is located on the Indus river at Basha. Therefore the detailed feasibility study of this scheme was carried out on immediate basis and in accordance to that the PC-II in 1989 was prepared. After that the study was carried out in two stages for which separate PC-II was prepared and approved.

The final approved document is PC-I which was approved in 2009. According to this proforma, overall implementation cost of the project (March 2008 prices) was estimated as US$ 11.339 Billion including foreign component of US$ 3.971 Billion. The project should be accorded very high priority for implementation as per declared policy of GoP.

Throughout the study various approvals have been granted there list is as follows and there detail description is in the following section.

1. MOU between GoP and Canada, 1980

2. PC-II proforma, 1989

3. PC-II proforma for stage - I, 2000

4. PC-II proforma for stage - II, 2003

5. PC-II (Revised) for stage - II, 2007

6. PC-I proforma for Acquisition of Land & Resettlement, 2008

7. PC-I proforma for KKH Relocation, 2008

8. PC-I proforma for Diamer Bhasha Dam Project (DBDP), 2009

9. MOU with Pir Mehr Ali Shah-Arid Agriculture University Rawalpindi (PMAS-AAUR)

STATUS OF GOVERNMENT PLANNING AND APPROVAL DOCUMENTS

Data Collection, Review and Preparation of International Tender document for the Diamer Bhasha Dam Project

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10. MOU with Karakoram International University (KIU), Gilgit

3.0 PROGRESS IN PROJECT PLANNING AND DEVELOPEMENT

3.1 ORIGIN OF WATER & POWER DEVELOPMENT IN PAKISTAN, (1947 - 1979)

The Pakistan – India disputes started just after the emergence of Pakistan in 1947 India stopped supplies of canals as they were their headworks. To resolve these disputes the World Bank initiated and managed to sign the Indus Water Treaty in 1960. The treaty stated the waters of three eastern rivers were allocated to India, and those of the western rivers, i.e. Indus, Jhelum and Chenab allocated to Pakistan. As a result a huge infrastructure of replacement works for storage and transfer of waters from western rivers was constructed under “Indus Basin

Project (IBP)” to make up for water of three eastern rivers allocated to India.

With the signing of the treaty the long term planning of water and power development in

Pakistan started with Lieftinck study group which was commissioned under the auspices of

World Bank. It was aimed to outline a feasible action program for 1965-1975 defining an adequate type of development.

To meet the long term power requirement of Pakistan, Water and Power Development authority

(WAPDA) in assistance with Canadian International Development Agency (CIDA) began to work on a ranking study in 1975 to explore the hydro-electric Power sites. In October, 1979 a proposal was submitted to CIDA by the Montreal Engineering Company Limited for a contract to undertake the hydroelectric inventory, ranking and feasibility studies in Pakistan.

3.2 MOU BETWEEN GOP AND CANADA, 1980

In June 12, 1980 a Memorandum of Understanding (MOU) was signed between the Government of

Pakistan (GOP) and Canada. It was aimed to formulate an inventory and ranking study to identify the potential hydropower sites on Indus, Jehlum and Swat rivers. In August 5, 1981 the Canadian

International Development Agency (CIDA) involved a Canadian engineering consulting firm, Montreal Engineering Company Limited (Monenco), to undertake the preparation of inventory and ranking study.

In 1983, the Inventory and Ranking Report concluded that Bhasha, near chillas is considered to be the most attractive hydroelectric scheme. In order to prepare the Feasibility Study at Bhasha Dam site Monenco was rehired by GOP and CIDA. The feasibility study by Monenco was submitted in

October, 1984. It was concluded that the Bhasha dam site is technically feasible.

3.3 PC-II PROFORMA, 1989

Based on the 1988 PoE’s report, WAPDA prepared a PC-II Proforma and submitted to Government of Pakistan in November 1988. This PC-II was considered by CDWP on February 01,1989 and recommended as follows:

STATUS OF GOVERNMENT PLANNING AND APPROVAL DOCUMENTS

Data Collection, Review and Preparation of International Tender document for the Diamer Bhasha Dam Project

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Stage I - of the Project for carrying out detailed Feasibility Study of Basha Diamer Dam including relocation and Up-gradation of the Karakurram Highway (KKH) and preparation of tenders documents for KKH.

Stage II - For the detail design of Basha Diamer Dam Project should be undertaken after the feasibility study.

Economic Affairs Division of GoP should arrange the finances for Stage – I while the requirements for the stage – II and the status of the project may be indicated to the donors to obtain the advance commitment for Stage- II so that the Basha Project documents could be prepared for International Competitive Bidding (ICB). If the commitments from donors were not sufficient then, bilateral assistance may be explored.

After approval of the PC- II on February 01, 1989 for stage - I WAPDA appointed Local Consultants to upgrade the Monenco preliminary feasibility as per the PoE, WAPDA awarded a contract to

NEAC which was a joint venture between NESPAK and ACE and two foreign consulting engineering firms; Binnie Black and Veatch of UK and MWH Energy and Infrastructure Inc. of USA, in association with six other local consulting engineering firms. NESPAK is the lead firm in the joint venture.

3.4 PC-II PROFORMA FOR STAGE - I, 2000

In a meeting on October 30, 2000 chaired by the Chief Executive of Pakistan, it was decided that

WAPDA should take up-gradation of Feasibility Report and detail engineering design including preparation of tender documents. However as a first step WAPDA was advised to submit PC-II for stage I i.e. Up-gradation of Feasibility report of the Project. PC-II for stage –I was approved by

ECNEC in September 2000 for an amount of Rs. 900.065 million for preparation of Feasibility

Report and appointment of high level PoE. The Consultants (NEAC – BDDP) were engaged in July

2002.

The contract Agreement was signed on June 03, 2002 to upgrade the feasibility study in 25 months from the commencement date. In August 2004, NEAC submitted the final Feasibility

Report.

3.5 PC-II PROFORMA FOR STAGE - II, 2003

As recommended by CDWP, a separate PC-II for stage-II, Detailed Engineering Design and preparation of Tender documents for the Project was prepared and got approved for an amount of Rs. 567.842 million from ECNEC on September 27, 2003. This PC-II was prepared for eighteen

(18) months with very little allocations for investigations, with only 948 man-months of the

Consultants and 37.5 man-months of the Panel of Experts, as such required revision.

3.6 PC-II (REVISED) FOR STAGE - II, 2007

STATUS OF GOVERNMENT PLANNING AND APPROVAL DOCUMENTS

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The previously approved PC-II was prepared for 18 months keeping in view the quantum of work it was increased to 40 months. The Consultants in stage-I proposed more detailed investigation in different disciplines. Therefore the cost of PC-II also increased due to increase in man-months of

Local and Foreign staff.

The revised PC-II was approved on March 07, 2007 for an amount of Rs. 1677.424 million.

Concurrent with tender design, preparation of bidding documents was started by DBC in April, 2007 on the basis of World Bank Guidelines. This comprises of five contract lots and was completed in June, 2008.

3.7 PC - I PROFORMA OF AQUISITION OF LAND & RESETTLEMENT, 2008

This activity is being carried out under a separate PC-I (Part-1) for “Land Acquisition and

Resettlement for Diamer Basha Dam Project” by WAPDA. This proforma was approved by ECNEC on 06 November 2008 for an amount of Rs. 60 Billion excluding the cost of government owned land and interest during construction. This cost has duly been included in the Umbrella PC-I

Proforma of Diamer Basha Dam Project approved by ECNEC on 20 August 2009. Currently Priority

Land Acquisition has started and 55% of it has been acquired.

3.8 PC - I PROFORMA OF KKH RELOCATION, 2008

Feasibility Report, Design and tender documents for KKH relocation had been prepared by the

Consultants in 2004. KKH Relocation is to be constructed by National Highway Authority (NHA) on behalf of WAPDA. WAPDA’s PC-I Proforma titled “PC-I Proforma for Construction of Bypass Shatial –

Thor Nullah – Existing Karakoram Highway (KKH)” August 2008 for Rs. 3928.559 million was superseded by “PC-I Proforma for Construction of Bypass Shatial – Thor Nullah – Existing Karakoram

Highway (KKH) April 2009 for an amount of Rs. 5511 million.

ECNEC approved this PC-I for an amount of Rs. 3844,431 million in its meeting on 20 August 2009 as part of the Diamer Basha Dam Project. Though this amount is based on reduced scope of work the total cost of construction of KKH Relocation from Shatial to Raikot amounting to Rs. 22,879 million and contained in the approved Umbrella PC-I of DBDP on 20 August 2009 will remain unchanged.

3.9 PC - I PROFORMA OF DIAMER BHASHA DAM PROJECT (DBDP), 2009

The effort of completing the detailed design and tender documentation of the project consequently, the project has now been brought to a stage where its implementation could be undertaken on priority basis.

On January 1, 2009 WAPDA submitted the PC-I Proforma of Diamer Basha Dam Project (DBDP) to the Ministry of Water and Power (MoW&P), Government of Pakistan (GoP). According to that the overall implementation cost of the project (March 2008 prices) was estimated as US$ 11.339

Billion. Executive Committee of National Economic Council (ECNEC) in August 27, 2009 cleared the

PC-I Proforma of DBDP on the recommendations of the Planning Commission / Planning and

STATUS OF GOVERNMENT PLANNING AND APPROVAL DOCUMENTS

Data Collection, Review and Preparation of International Tender document for the Diamer Bhasha Dam Project

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Development Division (Energy Wing) GoP, Islamabad and approved the same for a total amount of

Rs. 894,257 million with foreign component of Rs. 312,943 million.

Initially the Budget allocated in 2009-2010 which was approved by GoP was of Rs. 25,382 million in total. It includes WAPDA own resources of Rs. 22,332 million and GoP of Rs. 3,050 million. The distribution was made on three core project items i.e. main project activities (Lot 1-5), Land

Acquisition and Resettlement activities and Preliminary Works; Project Colony & Relocation of KKH

(Shatial – Thor Bypass through NHA).

For the administrative and construction supervision staff of WAPDA and Consultants, a project colony is being constructed in Thor valley about 14 km upstream of the dam site. Out of total 15 contracts, 12 are under execution. Over all 55% progress has been achieved. A vocational Training Institute has also been setup.

3.10 MOU WITH PIR MEHR ALI SHAH- ARID AGRICULTURE UNIVERSITY RAWALPINDI (PMAS-

AAUR)

The WAPDA through LA&R executed a MoU for Environmental Research in the Diamer Basha Dam

Project. As per MoU it was agreed that WAPDA would provide the stipend to MS/M.Phil and PhD

Students and students will be selected from the Project and adjacent area. In this regard, PMAS-

AAUR in the session of 2012, selected three MS/M.Phil Scholars for Environmental Research in the

Project Area. For the session of 2013, regarding the selection of topics, the case has been discussed with Dean Faculty of Forest, Range Land Management and Wildlife.

3.11 MOU WITH KARAKORAM INTERNATIONAL UNIVERSITY (KIU), GILGIT

The case has also been initiated with Karakoram International University (KIU), Gilgit for

Environmental Research in the Diamer Basha Dam Project Area. In this regard, MoU has been prepared and submitted to Vice Chancellor KIU for review and approval. The MoU has been reviewed by KIU and sent back to WAPDA. The final MoU was sent to KIU for signature but the

MoU has not been signed due to some reasons.