Govt Rejects Report of Diamer Bhasha Dam Power Cut

In practice, the Power Division and WAPDA Chairman Lt. Gen.

Key points

• Pakistan's Massive New $3.5 Billion Oil Refinery Clears CPEC Hurdle.
• According to Saeed, WAPDA remains committed to starting civil works under the MW 2 portion of the power generation component by June 2027.
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• The project has the potential to generate 18.1 billion units of clean and green electricity annually, according to the WAPDA chairman.

In practice, the Power Division and WAPDA Chairman Lt. Gen. (R) Muhammad Saeed have rejected a report claiming that the administration had dropped the 4, 500 megawatt power generation component of the Diamer Bhasha Dam, saying no such decision has been taken and the project remains committed under Pakistan's Indicative Generation Capacity Expansion Plan.

In a post on X on August 29, the Power Division described the report by Brief.pk as "fake news" and remarked the Diamer Bhasha Dam generation component is included in both existing and future IGCEP documents.

Notably, the report had asserted that the administration had removed the power generation component from the ongoing construction schedule and would initially build only the storage dam, with the 4, 500 MW hydropower component to be developed at a afterwards stage. It cited what it described as a leaked Economic Affairs Division document and a source familiar with the decision-making process. Pakistan's Diesel Imports Hit Three Year Low.

Notably, the report further asserted that the government's position was based on excess generation capacity, rapid expansion in rooftop solar, weaker electricity demand and the cost of power evacuation infrastructure. It additionally alleged that lobbying by independent power producers had influenced the decision.

In practice, the Power Division rejected the alleged link with IPPs, saying that "the new IPPs business has permanently closed in Pakistan after the establishment of a free electricity market by the present government." It continued that attempts to link IPPs with the Diamer Bhasha project and sensationalize the problem were based on "fake assumptions."

WAPDA Chairman Lt. Gen. As the executing agency for the project, assures the public that no decision had been taken by the federal administration to drop the power generation component, (R) Muhammad Saeed, in a separate tweet on X, remarked, WAPDA. Pakistan's Massive New $3.5 Billion Oil Refinery Clears CPEC Hurdle.

Saeed remarked Diamer Bhasha is a multipurpose project with a gross water storage capacity of 8.1 million acre feet and an installed power generation capacity of 4, 500 MW. The project has the potential to generate 18.1 billion units of clean and green electricity annually, according to the WAPDA chairman.

He remarked the power generation component is a committed project under the IGCEP and was approved at a cost of Rs. 1.424 trillion in April 2023. The approved power component comprises four major packages: MW 2, Hydromech 2, Electromech 1 and Electromech 2.

According to Saeed, WAPDA remains committed to starting civil works under the MW 2 portion of the power generation component by June 2027. Work on Electromech 1 is projected to follow by the end of December 2027.

In practice, the original report had argued that postponing the power component could create serious technical and financial risks since critical infrastructure needed for future electricity generation would be more challenging and costly to build after the reservoir is filled. Stay Connected with ProPakistani.

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In short, govt Rejects Report of Diamer Bhasha Dam Power Cut is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.