ISLAMABAD – The cost of the Diamer-Bhasha Dam project has escalated by 119.21%, rising from Rs479 billion to Rs1.05 trillion, due to revised designs, enhanced security measures, and other external factors, according to Minister for Water Resources Musadik Malik.
In a written reply to the National Assembly, the minister cited the redesign of the main dam to accommodate updated seismic parameters by the International Commission on Large Dams (ICOLD). Modifications also included the diversion scheme, flushing tunnel, hydro-mechanical works, and revised flood safety measures, driven by additional geological investigations.
Security concerns for Chinese contractors and expatriates necessitated strengthened measures, adding Rs17 billion to costs. Restricted expatriate movements between Islamabad and the project site by air alone also contributed.
The fluctuating exchange rate, which shifted from Rs105.3 to Rs278.3 per US dollar between 2018 and 2024, accounted for a 31.34% increase in project costs (Rs178 billion). Design changes added Rs85 billion (14.95%), while Rs9 billion was allocated for a helicopter to transport foreign staff safely. An additional Rs7 billion (1.24%) was spent on a Safe City Project to secure the area.
The minister reported that interest during construction for foreign components added Rs82 billion (7.5%) to the cost. The overall progress of contract MW-I stood at 16.09%, with time overruns being a major factor in the cost hike. International best practices are being deployed to monitor project progress and implement corrective measures.
Separately, Parliamentary Secretary for Commerce Zulfiqar Ali Bhatti addressed disruptions in rice exports to European countries, citing deficiencies in the Department of Plant Protection’s (DPP) certification process. The government is considering elevating the DPP to an authority, following the suspension of an officer and the initiation of an inquiry ordered by the Prime Minister.
Meanwhile, the opposition Pakistan Tehreek-e-Insaf (PTI) disrupted the National Assembly proceedings, protesting for the release of Imran Khan and a judicial probe into recent incidents. Deputy Speaker Ghulam Mustafa Shah suspended the session after a lack of quorum was noted.
Story by Naveed Butt | Zulfiqar Ahmad
