Tender documents issued for civil works of Dasu Hydropower Project

Lahore, February 16, 2016 (PPI-OT): The Pakistan Water and Power Development Authority (WAPDA) was briefed on the execution timelines of the Stage-1 of Dasu Hydropower Project in a meeting here at WAPDA House. The Project Management was confident that with issuance of tender documents on 12th February, the timeline for the start of construction of the main civil works would soon be finalised and it is expected that actual construction of the main dam would start by July 2016. It was projected that as the dam and its allied structures of the Stage-I would be completed in five years, it would add 2160 MW in the system at peak flows in the summer of 2021. The meeting, presided over by WAPDA Chairman Zafar Mahmood, was attended by Member (Water) Muhammad Shoaib Iqbal, Member (Power) Badrul Munir Murtiza and Member (Finance) Anwar-ul-Haq.

It was noted in the meeting that the Stage-1 of Dasu Hydropower Project is estimated to cost US$4.3 billion. The World Bank conceived an innovative approach to finance the project. In this regard, the World Bank has provided a loan of US$588 million and partial credit guarantee of US$460 million. It has also indicated to provide another IDA/IBRD tranche of US$533 million and a partial credit guarantee of US$460 million in 2017. All this covers approximately 25% of the total project cost for Stage-I. As indicated in the Project Appraisal Document, about US$ 2 billion commercial loan is to be obtained from the local as well as foreign banks by utilising the World Bank’s partial credit guarantee.

The meeting noted with satisfaction that World Bank has issued the No Objection Letter (NOL) after WAPDA met the precondition of awarding the mandate to a consortium of seven local banks led by Habib Bank Limited for providing loan amounting to Rs.144 billion to be disbursed in five years. WAPDA received approval of the guarantee from Government of Pakistan on February 10, while it issued the mandate on February 11. WAPDA Received NOL from the World Bank on February 12 and it issued the tender documents to the pre-qualified bidders on the same day. The pre-qualified bidders belong to Korea, Turkey, China, Italy and Veitnam; which are to submit their bids within 90 days of issuance of the tender documents. The total cost of the main civil works of Stage-I is estimated to be US$ 2.5 billion according to Project Appraisal Document. Once the contract for main civil work is awarded, WAPDA will initiate the pre-qualification process of electro-mechanical works.

Earlier, the meeting was briefed that following five contracts of preliminary works, which were awarded earlier, the contractors have started the work at sites:

1. Relocation of Karakoram Highway worth Rs. 14.538 billion

2. Construction of Right Bank Access Road worth Rs. 2.713 billion

3. Construction of 132 kilovolt (KV) transmission line from Duber Khwar Hydel Power Station to Dasu worth Rs. 1.583 billion

4. Construction of project colony and allied infrastructure worth Rs. 4.8 billion

5. Construction of resettlement sites and Shatial Museum worth Rs.571.95 million

It is pertinent to mention here that the Federal Government is implementing Dasu Hydropower Project in two stages i.e. Stage-I and II. The 2160 MW-Stage-I is scheduled to be completed in five years and will contribute more than 12 billion units of cheap, affordable and environment-friendly electricity to the national grid every year. The project will not only add a sizeable quantum of low-cost electricity to the national grid but also provide relief to the consumers by reducing power tariff.

For more information, contact:
Muhammad Abid Rana
Director Public Relations
Water and Power Development Authority (WAPDA)
G-32, WAPDA House, Lahore
Tel: +92-42-99202633
Fax: +92-42-99203144
Cell: +92-333-4458293
Email: mabidrana@gmail.com
Website: www.wapda.gov.pk