Mohmand Dam Will Now Cost Rs. 666 Billion

Meanwhile, the cost of Pakistan's under-construction Mohmand Dam hydropower project has surged by 115 percent over the past eight years, reaching Rs666 billion, according to authorities.

Key points

• The dam's cost was approved at Rs310 billion in April 2018, with a completion target of September 2025, but the project now proposes an extra Rs356 billion.
• According to documents, the revised estimate proposes a construction cost of Rs267 billion, up by Rs153 billion or 134 percent over the initial estimate.
• The Water and Power Development Authority (WAPDA) has proposed setting the revised project cost at Rs666 billion.
• The 2022 floods in the Swat River damaged the tunnels built for water diversion, disrupting construction for a prolonged period.
• While construction work was regarding 57 percent complete, documents show that Rs275 billion had been spent on the project as of last month.

Authorities attribute the rise largely to the rupee's depreciation against the dollar, along with design changes, the 2022 floods, and security matters, all of which affected both cost and the completion timeline.

In practice, the Water and Power Development Authority (WAPDA) has proposed setting the revised project cost at Rs666 billion. The matter was presented to the Central Development Working Party (CDWP) this week, but no decision was taken due to time constraints. Islamabad Intends to Shift Electricity Poles Underground.

After which the matter is referred to the Executive Committee of the National Economic Council (ECNEC) for final approval, the CDWP is the initial forum for approving mega projects. The dam's cost was approved at Rs310 billion in April 2018, with a completion target of September 2025, but the project now proposes an extra Rs356 billion.

Project management informed the Planning Commission that currency depreciation, design changes, floods and security-related difficulties were the main reasons for the cost escalation and delays.

WAPDA remarked concerning 51 percent of the overall cost growth was caused by the rupee's depreciation against the dollar. Since the project involves both local and foreign currency expenditures, exchange rate fluctuations raised the rupee value of foreign costs.

For context, the Planning Commission has asked WAPDA for details of payments under dollar-denominated contracts and the impact of exchange rate changes on the project cost, noting that merely converting foreign currency contracts at the current rate is insufficient and that contract terms and payment obligations must be reviewed.

According to documents, the revised estimate proposes a construction cost of Rs267 billion, up by Rs153 billion or 134 percent over the initial estimate. The power generation component has risen to Rs399 billion, an growth of Rs204 billion or 105 percent.

While construction work was regarding 57 percent complete, documents show that Rs275 billion had been spent on the project as of last month. The dam is being built by China's Gezhouba Group Firm Limited in a joint venture with Pakistan's Descon Engineering Limited. Rawalpindi Faces 21 Million Gallon Daily Water Shortfall.

Notably, the 2022 floods in the Swat River damaged the tunnels built for water diversion, disrupting construction for a prolonged period. The Planning Commission has termed the delays and cost overruns concerning and recommended a third-party audit of financial and physical progress.

Meanwhile, the commission has additionally recommended preparing a revised financial plan. Once completed, the Mohmand Dam is projected to add 1.29 million acre-feet to Pakistan's total water storage capacity. Stay Connected with ProPakistani. Obtain the latest news and stories wherever you prefer. Follow on Google Discover. Follow on Google News Join WhatsApp. See more ProPakistani stories in Google Search and Top Stories.

In short, mohmand Dam Will Now Cost Rs. 666 Billion is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.