Wapda dismayed at not seeking US aid for hydro projects

[Naveed Yaseen]

MUSHTAQ GHUMMAN
ISLAMABAD (September 24 2009): Water and Power Development Authority (Wapda) Secretary has reportedly expressed dismay in a letter to the Presidency for not seeking support from Richard Holbrooke, US Special Envoy to Pakistan and Afghanistan, on vital water sector projects, sources told Business Recorder.

"No water project that Wapda had proposed earlier for financing by USAID was discussed, like Diamer Basha Dam ($7 billion), Bara Dam ($138 million), Kurram Tangi Dam ($300 million), rehabilitation of Mangla-Warsak Hydropower Project ($400 million)," sources quoted Imtiaz Tajwar, Secretary, Wapda, writing in a letter to Zafar Iqbal Qadar, Additional Secretary (Infrastructure), President Secretariat.

The only projects that Wapda Chairman Shakil Durrani was asked to present were improvement in the supply of power to Malakand Division (PATA) for $30 million and to FATA development for $100 million. Presentations were, however, made by representatives of Pakistan Electric Power Company (Pepco), Karachi Electric Supply Company (KESC), and Petroleum Ministry.

Wapda Chairman was approached for his comments on the letter written by his Secretary which lamented the fact that Wapda Chairman was not invited to make a presentation during Holbrooke's visit, he stated that there must be some misunderstanding and he would sort it out. He added that USA is basically interested in financing short-term water and power projects and not long-term projects.

"USA has agreed to extend $500 million loan for replacement of Mangla Dam machinery which is almost 40 years old," he added. Official documents presented by Holbrooke at a meeting in the Presidency, and available with this scribe reveal that the US was considering financial support for Bhasha Diamer Dam (in Kohistan district) project, which will cost an estimated 11 billion dollars over a 10-15 year construction period to produce 4500 MW of capacity.

The World Bank, in addition to supporting policy reforms, is looking at a range of projects: re-powering gas plant, large scale hydro projects, developing pilots to repower irrigation and hot water to solar power, and Thar coal policy development.

Washington has expressed disappointment at Islamabad's unpreparedness in dealing with the current energy crisis, saying that Pakistan has to take some tough decisions to deal with the energy problems. Holbrooke during his last visit to Islamabad had noted that Pakistan's energy problems so far had been sporadic, seeking silver bullet in gas imports from Iran and Turkmenistan pipelines and turning to expensive oil-fired rental power plants for the short-term and requesting Saudi Arabia for free oil.

http://www.brecorder.com/index.php?id=963565