CDWP clears Rs1.74trn revised Dasu hydropower project (2025)

ISLAMABAD: The Central Development Working Party (CDWP) has cleared 10 development projects at a cost of Rs1.96 trillion.

Out of these, four development projects of Rs14.312 billion were approved by the CDWP forum, while six projects amounting to Rs1.82 trillion have been recommended to the Executive Committee of the National Economic Council (ECNEC) for consideration and final approval.

The CDWP met with Minister for Planning, Development and Special Initiatives and Deputy Chairman Planning Commission Ahsan Iqbal in the chair at P-Block Secretariat of Planning Ministry.

Pakistan, World Bank agree to expedite implementation of Dasu Hydropower Project

The meeting was attended by Secretary Planning Awais Manzur Sumra, members of the Planning Commission, federal secretaries, heads of Provincial Planning and Development departments, and representatives from federal ministries and provincial governments.

The CDWP meeting discussed development projects relevant to the sectors of Education and Training, Higher Education, Information Technology, Physical Planning and Housing, Power, Water Resources, and Transport and Communications.

In the power sector, the revised “Dasu Hydropower Project (Stage-I)” at cost of worth Rs1.74 trillion was referred to ECNEC subject to WAPDA rationalising the costs and answering the queries.

Reviewing the project, Minister Iqbal emphasised the strategic importance of Dasu Hydro power project for Pakistan’s water and food security. He expressed serious concern on massive cost escalation from the original Rs479 billion to almost Rs1.73 trillion due to delays and mismanagement in the project.

The minister directed to get third party validation of the astronomical increase in the revised PC-1. The basic objective of the Dasu Hydropower Project is to expand the generation capacity of the power sector by exploiting the hydel potential of the country that is available on rivers to reduce carbon footprint and tap country’s hydro energy potential.

While reviewing the Dasu project, he emphasised the strategic importance of Dasu for Pakistan’s water and food security, underscoring the need for its swift completion in national interest. He noted that previously the estimated construction cost was Rs479 billion, with Rs120 billion already allocated for land acquisition.

However, he attributed the substantial cost escalation—to Rs1.73 trillion to mismanagement and delays and lack of progress during the previous government, which he described has disastrous consequences for development projects in every field.

He took notice of the fact that despite ECNEC directions to appoint an independent full time Project Director for each projects over Rs3 billion, WAPDA did not appoint an independent Project Director (PD) for the project.

It was also pointed out that there was no professional CFO for the project. The minister asked how is WAPDA running a project of this magnitude without a qualified and competent CFO? The minister was angry to learn that WAPDA had awarded contract for the construction of 66 kms KKH section in foreign currency.

On his inquiry that why was road construction project done in foreign currency, WAPDA could not give any satisfactory reply. He called it criminal negligence. It was also pointed out that WAPDA had made design changes and incurred expenditure without approval from CDWP and ECNEC. The minister sought explanation from WAPDA.

In the transport and communications sector, the project, “Sindh Flood Emergency Rehabilitation Project (SFERP) Phase-II” worth Rs12.261 billion was referred to ECNEC.

The project will be financed through US$ 40 million in foreign funding from the World Bank and US$ 4 million by the Government of Sindh. It aims to rehabilitate 145.94 kilometers of roads in four districts of Sindh, rescue stations, and to enhance disaster preparedness and emergency response capacities.

In the water sector, the project, “Balochistan Water Security and Productivity Improvement Project (BWS&PIP) – Improvement of Quetta Water Supply System (New)” worth Rs9.835 billion was referred to ECNEC. Funded by the World Bank, the project will address Quetta’s acute water shortage and is part of a broader master plan to improve water supply, benefiting the city’s approximately three million residents.

Additionally, another water-related project titled, “Flood Management of Kachhi Plains under Balochistan Water Security and Productivity Improvement Project (BWSPIP)” worth Rs17.175 billion was also referred to ECNEC.

This project will be financed through IDA credit and aims to enhance flood management, improve water accessibility for productive use, and bring additional cultivable land under irrigation in Balochistan.

In the education and training sector, the CDWP considered the project titled, “Getting Results Accesses and Delivery of Quality Education Services in Balochistan (New)” worth Rs28 billion, which has been referred to ECNEC for further consideration.

The project, to be financed through foreign funding of US$ 100 million from the World Bank, is designed to address systemic challenges in Balochistan’s education sector. It encompasses four key components focusing on improving access to education, enhancing teaching quality, strengthening data-driven accountability, building resilience to climate change, and introducing emergency preparedness mechanisms.

In the higher education sector, the project, “Establishment of Sub-Campus Quaid-I-Azam University Islamabad at Sharaqpur, Sheikhupura (New)” worth Rs3,888.147 million was approved after detailed deliberations on the condition of provision of land by Government of Punjab and approval by the syndicate of the university.

Copyright Business Recorder, 2025

CDWP clears Rs1.74trn revised Dasu hydropower project (2025)

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