PR No. 89
Government Approves Revised Dasu Hydropower Project Worth Rs. 1.74 Trillion, Refers to ECNEC for Final Nod
Islamabad: April 11, 2025

The Central Development Working Party (CDWP), under the chairmanship of Minister for Planning, Development & Special Initiatives and Deputy Chairman Planning Commission, Ahsan Iqbal, approved 10 development projects in its recent meeting. Out of these, 4 projects worth Rs. 14.312 billion were approved by the CDWP forum, while 6 projects amounting to Rs. 1.82 trillion have been recommended to the Executive Committee of the National Economic Council (ECNEC) for consideration and final approval. The meeting was attended by Secretary Planning Awais Manzur Sumra, members of the Planning Commission, Federal Secretaries, heads of Provincial Planning & Development departments, and representatives from Federal Ministries and Provincial Governments. The agenda comprised projects across diverse sectors including Education & Training, Higher Education, Information Technology, Physical Planning & Housing, Power, Water Resources, and Transport & Communications. In the Education & Training sector, the CDWP considered the project titled “Getting Results Accesses and Delivery of Quality Education Services in Balochistan (New)” worth Rs. 28,000 million, which has been referred to ECNEC for further consideration. The project, to be financed through foreign funding of US$ 100 million from the World Bank, is designed to address systemic challenges in Balochistan’s education sector. It encompasses four key components focusing on improving access to education, enhancing teaching quality, strengthening data-driven accountability, building resilience to climate change, and introducing emergency preparedness mechanisms. In the Higher Education sector, the project “Establishment of Sub-Campus Quaid-I-Azam University Islamabad at Sharaqpur, Sheikhupura (New)” worth Rs. 3,888.147 million was approved after detailed deliberations on the condition of provision of land by Government of Punjab and approval by the syndicate of the university. In the Information Technology sector, three projects were approved: “Prime Minister's Initiatives - Support for IT Startups, Specialized IT Trainings and Venture Capital (Revised)” worth Rs. 5,000 million; “Strengthening of Ministry of Planning, Development & Reform in IT (2nd Revised)” worth Rs. 579.815 million; and “National Semiconductor HR Development Program (NSHRDP) Phase-I (New)” worth Rs. 4,844.219 million. Under the Physical Planning & Housing sector, the project “Construction of Customs Complex at Sost (Part A) and Construction of Customs Digital Enforcement Stations by FBR along rivers Indus, Hub and in Balochistan (Part B) (Revised)” worth Rs. 16,101.320 million was referred to ECNEC. In the Power sector, the revised “Dasu Hydropower Project (Stage-I)” worth Rs. 1,737,881 million was referred to ECNEC subject to WAPDA rationalising the costs and answering the queries. Reviewing the project, Minister Ahsan Iqbal emphasized the strategic importance of Dasu Hydro power project for Pakistan’s water and food security. He expressed serious concern on massive cost escalation from the original Rs. 479 billion to almost Rs. 1.73 trillion due to delays and mismanagement in the project. He directed to get third party validation of the astronomical increase in the revised PC-1. The basic objective of the Dasu Hydropower Project is to expand the generation capacity of the power sector by exploiting the hydel potential of the country that is available on rivers to reduce carbon footprint and tap country’s hydro energy potential . The Minister and the DCPC Ahsan Iqbal, while reviewing the Dasu project, emphasized the strategic importance of the Dasu for Pakistan’s water and food security, underscoring the need for its swift completion in the national interest. He noted that previously the estimated construction cost was Rs. 479 billion, with Rs. 120 billion already allocated for land acquisition. However, he attributed the substantial cost escalation—to Rs. 1.73 trillion to mismanagement and delays and lack of progress during the previous government, which he described has disastrous consequences for development projects in every field. He took notice of the fact that despite ECNEC directions to appoint an independent full time Project Director for each projects over Rs 3 billion WAPDA didn’t appoint an independent Project Director (PD) for the project. It was also pointed out that there was no professional CFO for the project. The Minister asked, How is WAPDA running a project of this magnitude without a qualified and competent CFO? The Minister was angry to learn that WAPDA had awarded contract for the construction of 66 kms KKH section in foreign currency. On his inquiry that why was road construction project done in foreign currency WAPDA couldn’t give any satisfactory reply. He called it a criminal negligence. It was also pointed out that WAPDA had made design changes and incurred expenditure without approval from CDWP and ECNEC. The Minister sought explanation from WAPDA. In the Transport & Communications sector, the project “Sindh Flood Emergency Rehabilitation Project (SFERP) Phase-II” worth Rs. 12,261 million was referred to ECNEC. The project will be financed through US$ 40 million in foreign funding from the World Bank and US$ 4 million by the Government of Sindh. It aims to rehabilitate 145.94 kilometers of roads in four districts of Sindh, rescue stations, and to enhance disaster preparedness and emergency response capacities. In the Water sector, the project “Balochistan Water Security and Productivity Improvement Project (BWS&PIP) – Improvement of Quetta Water Supply System (New)” worth Rs. 9,835 million was referred to ECNEC. Funded by the World Bank, the project will address Quetta’s acute water shortage and is part of a broader master plan to improve water supply, benefiting the city’s approximately three million residents. Additionally, another water-related project titled “Flood Management of Kachhi Plains under Balochistan Water Security and Productivity Improvement Project (BWSPIP)” worth Rs. 17,175 million was also referred to ECNEC. This project will be financed through IDA credit and aims to enhance flood management, improve water accessibility for productive use, and bring additional cultivable land under irrigation in Balochistan. The CDWP reiterated its commitment to fast-tracking development initiatives that are critical for national perspective and inclusive growth, while ensuring transparency, efficiency, and sustainability in project execution. The Minister said, “Pakistan’s development budget has shrunk considerably during 2018-22 as a result every rupee is a sacred trust and must be guarded and spent with utmost responsibility to achieve the desired development goals.

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