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PROJECTS FOR USAID ASSISTANCE

(ONGOING – NEW) FOR 2012-2017

October 2012

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CONTENTS

DESCRIPTION PAGE

WATER AND POWER SECTOR DEVELOPMENT ........................................................................................ 4

ONGOING AND NEW PROJECTS PROPOSED FOR USAID ASSISTANCE .................................................. 5

GOMAL ZAM DAM PROJECT...................................................................................................................... 7

SATPARA DAM PROJECT ........................................................................................................................ 10

REPAIR AND MAINTENANCE OF UNITS 1, 3 & 4 OF TARBELA DAM ........................................................ 12

NEW PROJECTS FOR US ASSISTANCE .................................................................................................. 14

DIAMER BASHA DAM PROJECT .............................................................................................................. 16

KURRAM TANGI DAM MULTIPURPOSE PROJECT ................................................................................... 21

DARAWAT DAM PROJECT ....................................................................................................................... 23

NAI GAJ DAM PROJECT........................................................................................................................... 25

NAULONG DAM PROJECT ....................................................................................................................... 26

GARUK DAM PROJECT ............................................................................................................................ 27

PELAR DAM PROJECT ............................................................................................................................. 28

ALLAI KHWAR HYDROPOWER PROJECT ................................................................................................ 30

DUBER KHWAR HYDROPOWER PROJECT ............................................................................................. 32

KHAN KHWAR HYDROPOWER PROJECT ................................................................................................ 34

REPAIR & MAINTENANCE OF TARBELA POWER STATION ..................................................................... 37

UP-GRADATION AND REFURBISHMENT OF GENERATING UNITS OF MANGLA POWER STATION ........ 39

UP-GRADATION, REHABILITATION AND MODERNIZATION OF WARSAK HYDROELECTRIC POWER

STATION .................................................................................................................................................. 40

APPOINTMENT OF GENERAL CONSULTANTS ........................................................................................ 41

TRAINING & CAPACITY BUILDING – US$ 21 Million .................................................................................. 42

TREATMENT OF EFFLUENT WATER OF RBOD ....................................................................................... 43

SUMMARY OF USAID FINANCIAL ASSISTANCE COMMITTED ................................................................. 44

SUMMARY OF USAID FINANCIAL ASSISTANCE REQUESTED ................................................................. 44

JOINT WAPDA USAID TASK FORCE ON THE PROJECTS ........................................................................ 45

EXISTING INSTALLED GENERATION CAPACITY ..................................................................................... 46

EXISTING INSTALLED GENERATION CAPACITY ..................................................................................... 46

PEAK DEMAND PROJECTIONS (WHOLE COUNTRY) 2009–2030 ............................................................. 47

www.wapda.gov.pk

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VISION � Pakistan’s Vision about Development of Water Resources is the optimum utilization of Water

Resources for irrigation and generation of Energy for sustainable Economic Growth

GOALS

� Development of projects in water sector for irrigation, flood control, water supply and drainage.

� Development of projects in power sector for generation, transmission and distribution of power.

� Prevention of Water-logging, salinity and reclamation of Waterlogged and saline land.

� Flood Mitigation.

� Conservation of Water – High Efficiency Micro Irrigation Water Techniques.

� Inland Waterways Navigation

� Transfer of technology through expertise in Water & Power sectors.

� Full Cost Recovery.

� Subsidies reduction

PRIORITIES

Establishment of Large Reservoirs - Request for USAID

� Diamer-Basha Dam (6.4 MAF Live Storage, 4500 MW Power, 19 Billion Units)

� Kurram Tangi (0.90 MAF Live Storage, 83.4 MW Power)

Ongoing Hydel Power Projects – under USAID

� Gomal Zam Project US$ 80 Million (US$ 55.589 M released so far)

� Waran Canal (Under Gomal Zam) US$ 12 Million

� Satpara Dam US$ 26 Million (US$ 21.485 M released so far)

� Upgradation & Rehabilitation of Tarbela Power Units US$ 16.5 M (US$ 10.210 M released so far)

Proposed/New Hydel Power Projects

Provision of US$ 54 Million would add 417 MW of cheap Hydropower to National Grid.

� Allai Khwar Hydropower Project (121 MW) – US$ 26 M to complete the project

� Duber Khwar Hydropower Project (130 MW) – US$ 20 M to complete the project

� Khan Khwar Hydropower Project (72 MW) – US$ 4 M to complete the project

� Jinnah Hydropower Project (96 MW) – US$ 4 M to complete the project

� Upgradation of Mangla Power House

� Rehabilitation of Warsak Hydel Project

� Munda Dam – (1.3 MAF)

Increase Water Efficiency

� Introduction of high level micro irrigation techniques (Drip & Sprinkle Irrigation System)

� Treatment of Effluent Water of RBOD

� Canal Lining

� Establishment of underground water reservoirs

Technical Assistance

� Appointment of services of General Consultants

� Capacity building of WAPDA staff by strengthening and upgradation of training institutes of WAPDA (Staff College, Engineering Academy).

� Training of WAPDA officers/staff in USA & Pakistan through exchange programme

� Remote Sensing to assess the Hydrology, Glacial Melt under Global Warming.

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WATER AND POWER SECTOR DEVELOPMENT � Irrigated agriculture is the backbone of Pakistan's economy. The agriculture sector is the major user of water

and its consumption will continue to dominate the water requirements. Direct rainfall contributes less than 15 percent of the water supplied to the crops. The major user of water for irrigation is the Indus Basin Irrigation System. About 105 Million Acres Feet (MAF) out of 155 MAF of surface water is being diverted annually for irrigation while around 48 MAF is pumped from ground.

� Pakistan has a total of 197 million acres (MA) area out of which 73 MA is cultivable. The cultivated area (Irrigated & Barani) is 52 MA, whereas 48 MA is irrigated. With large cultivable land base of 73 MA of which only 27 MA is canal commanded, Pakistan still has the potential of bringing about 20 MA of rain fed land under irrigation.

� With increased population, Pakistan is fast heading towards a situation of serious water crises. Per capita surface water availability was 5,260 cubic meters in 1951 when population was 34 million, which has reduced to 1,038 cubic meter in 2010 when the estimated population is 172 million.

� Due to excessive sediment inflows in the river water, all the three storages (Tarbela, Mangla, Chashma) are rapidly losing their capacities. By the year 2025, these storages would lose 37% (6.27 MAF) of their capacity which virtually means loss of one mega storage project.

� An annual average of over 32 MAF water escapes below Kotri varying from 0.3 to 92 MAF. However this surplus water is available for about 70-100 days of summers only. To save and utilize available water, construction of additional storage facilities is essential for sustainable irrigated agriculture which supports about 70% of the population of Pakistan.

� At present the installed power generation capacity is 20,982 MW. However, the dependable capacity is 19,421 MW out of which 6,516 is being produced through Hydropower, 3,580 by Government (GENCOs), 9637 by Independent Private Power Producers (IPPs) and Private Rental. Gap in demand and supply which rose to 5,000 MW in summer depicts acute power crises. The demand of power is currently about 20,000 MW which will rise to 36,000 MW in the year 2015. In order to bridge the energy gap the new hydropower projects are of vital importance.

� At present the hydel/thermal mix is 32:68% whereas it should be the other way round. Though induction of thermal generation initially helped in overcoming load shedding, it resulted in substantial increase in power tariff. Therefore, a sizeable injection of cheaper hydropower through multipurpose storages is the only viable option to keep the cost of electricity within affordable limits.

� It is an economically unsustainable fact that the total water storages capacity in the country is only 15 MAF representing 13% of the total annual flows of 136 MAF. To address this problem the Government of Pakistan (GoP) is developing feasibility and detailed engineering studies for nearly 20 MAF of water storage and 25,000 MW of hydel power.

� To facilitate the process of economic development and to ensure greater economic and social stabilization in Pakistan, it is imperative that employment creation and poverty reduction issues are addressed on priority. Additional water storages and power generation would form the basis of this strategy during the next decade. In the next few years: (i) Construction of large dams including Diamer-Basha during 2011 (ii) Construction of Medium/Small Water Storage Dams (iii) Construction of Canals (iv) Construction of Transmission Lines for dispersal of Power from Hydropower Project to Load Centres of National Grid would be priority issues. These projects would create additional water storages, generate cheap indigenously developed electricity and prevent flood damages. All these measures would also ensure food security, employment generation and above all poverty alleviation.

� Due to financial constraints, WAPDA has received only Rs. 9.5 billion out of its allocation of Rs. 27.5 billion under the PSDP for the year 2009-10 which indicates that the ongoing projects would be delayed, resulting in cost overrun and denying the desired benefits. The financial constraints continued in FY 2010-11 and 2011-12 when PSDP was reduced from Rs.15.365 Billion to Rs.9.693 Billion and Rs.20.115 Billion out of which 11.977 Billion has been released so far. In view of this financial constraint, WAPDA has made efforts in generating financial resources during the current year for its projects which are of critical national importance. USAID has signed agreement with WAPDA Repair and Maintenance of Units 1,3 &4 of Tarbela Power House US$ 16.5 million in year 2010. Besides it also signed Gomal Zam (Power & Irrigation Portion) and Satpara Dam (Power Portion) on 7.1.2011 & 5.10.2011 for providing US$ 80 million and US$ 26 million respectively. USAID has released US$ 50.089 million for Gomal Zam Dam, US$ 21.485 Million for Satpara Dam Project and US$ 10.210 Million for Repair & Maintenance of Units 1,3 & 4 of Tarbela Dam Project. The assistance from USAID came at the most appropriate time helping WAPDA to complete these projects. In addition WAPDA has proposed Diamer Basha Dam, Kurram Tangi Dam, Upgradation of Mangla and Warsak Power Stations and Training and Capacity Building as new projects for the assistance from USAID.

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ONGOING AND NEW PROJECTS PROPOSED FOR USAID ASSISTANCE

(US$ in Millions Rs in Billions)

S# Name of Project Total Cost

PSDP Allocation for

2012-13 (Rs)

PSDP Releases

so far (Rs)

Request for USAID Funds during 2011-12 & 2012-13/ Released so far

A. Under Implementation (2010-11)

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Gomal Zam Dam (South Waziristan) Agreements signed on 7.1.2011 (US$ 40 M) for Dam Portion, 5.10.2011 (US$ 40 M) for Irrigation Portion and 30.7.2012 (US$ 12 M) for Waran Canal System

$ 150 Rs 12.8

0.8 $ 92.0 Rs 8.0

US$ 55.089 M Released

2 Satpara Dam (Gilgit-Baltistan) Agreements signed on 7.1.2011 (US$ 26 M)

$ 52 Rs 4.4

0.2 $

Rs US$ 21.485 M Released

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Repair and Maintenance of Units 1, 3 & 4 Of Tarbela Dam Agreements signed in May 2010 (US$ 16.5 M)

$ 320 Rs 27.2

- $

Rs US$ 11.250 M Released

TOTAL (A) $ 92

Rs 8.0 B. Proposed New Projects for USAID (2012-13)

1 Diamer Basha Dam (NWFP.Gilgit Baltistan)

$ 11178 Rs 950.0

18.0 2.9 $ 200

Rs 17.0

2 Kurram Tangi Dam (North Waziristan) $ 700

Rs 59.0 0.1 0.1

$ 2 Rs 0.17

3 Darawat Dam (Jamshoro, Sindh)

$ 104 Rs.9.394

2.0 - $

Rs

4 Nai Gaj Dam (Dadu, Sindh)

$ 292 Rs 26.240

2.0 - $

Rs

5 Naulong Dam (Jhal Magsi, Balochistan)

$ 177 Rs 18.0

1.5 - $

Rs

6 Garuk Dam (Kharan, Balochistan)

$ 73 Rs 6.85

- $

Rs

7 Pelar Dam (Awaran, Balochistan)

$ 93 Rs 8.740

0.050 - $

Rs

8 Allai Khwar Hydropower Project (Battagram, Khyber Pakhtunkhwa)

$ 143 Rs. 8.578

2.173 - $

Rs

9 Duber Khwar Hydrpower Project (Shangla, Khyber Pakhtunkhwa)

$ 272 Rs. 16.324

3.859 - $

Rs

10 Khan Khwar Hydropower Project (Kohistan, Khyber Pakhtunkhwa)

$ 138 Rs. 8.301

- - $

Rs

11 Jinnah Hydropower Project (Mianwali, Punjab)

$ 226 Rs. 13.547

1.032 - $

Rs

12 Repair and Maintenance of Tarbela Power Station (KPK)

$ 100 Rs 9.0

- $ 8.5

Rs0.77

13 Upgradation (E&M)* of Mangla Hydel Power Station (AJK)

$ 508 Rs 42.5

- - $ 2

Rs 0.17

14 Upgradation (E&M)*of Warsak Hydel Power Station (KPK)

$ 308 Rs 25.5

- - $ 2

Rs 0.17

15 Appointment of General Consultants $ 50

Rs 4.2 - -

$ Rs

16 Training & Capacity Building $ 21

Rs 1.8 - -

$ Rs

TOTAL

(B) $ 218

Rs 18.6

G.

TOTAL; $ 298

Rs 25.4

USAID Assistance requested for ongoing projects Year 2011-12 US$ 92 Million Rs 8.0 Billion USAID Assistance requested for ongoing/ new projects (2012-17) US$ 3323 Million Rs 316 Billion

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GOMAL ZAM DAM PROJECT Location On Gomal river in South Waziristan Agency, West of Tank and D.I.Khan District of Khyber

Pakhtunkhwa..

This project is located at Khajuri Kach on Gomal River in South Waziristan Agency about 60 km west of Tank and being constructed as a Reinforced Cement Concrete (RCC) dam. WAPDA has conceived this project for the uplift of Tribal Areas particularly of South Waziristan Agency. This dam will store 1 MAF of water and irrigate 163,000 Acres of land, besides generating 17 MW of electricity. The project has been awarded to M/s Frontier Works Organization (FWO) of the Army, M/s Sinohydro (China) and M/s TEKSER (Turkey) are its joint partners. To execute a development project in militant infested area of South Waziristan, was a difficult task but WAPDA and its partners made all-out efforts for the continuation of work on this project. It is near completion as almost 90% work is completed. Due to paucity of development funds, completion could not be achieved. An additional funding of Rs3.0 billion/US$35 million would complete this project to bring significant impact on the people of South Waziristan to generate economic activity, conducive for peace and catalyst for national production.

♦ Salient Features

� Type � Height of Dam � Length of Dam � Length of Main Canal � Length of Distributaries � Gross Storage � Live Storage � Command Area � Power Generation � EIRR

RCC Gravity Dam 437 ft 758 ft 63 km 203 km 1.140 MAF 0.892 MAF 163,086 Acres 17.4 MW / 90.9 Gwh 12%

♦ Date of Commencement Actual July 2002 / Revised June 2007

♦ Date of Completion Actual Sep 2006 / Revised Jan. 2013

♦ Financial Status Local Foreign Total (Rs. Million)

Approved PC-I Cost 7,865.000 4,964.000 12,829.000 Expenditures upto 30.06.2012 8,934.312 3,317.936 12,252.248 PSDP Allocation for 2012-2013 1,000.000 800.000 1,800.000 Expenditures during the Month 22.961 365.477 388.438 Current F/Y Expenditures 43.703 365.477 409.180 Total Expenditures 8,978.015 3,683.413 12,661.428 − Contract re-awarded to FWO on 09.03.2007 at a cost of Rs. 10,400.634 Million (equivalent to US$ 171.063 M).

o Physical Progress 81.67 % against 96.26 % o Financial Progress 98.69 % against 97.84 %

USAID has signed agreements with WAPDA to provide US$ 40 Million for the Power Portion of Gomal Zam Dam on 07.01.2011, US$ 40 Million for Irrigation Portion on 05.10.2011 and US$ 12 Million for Waran Canal (under Gomal Zam Dam Project) on 30.07.2012.

USAID has released US$ 55.089 Million so far.

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US DELEGATION VISIT TO GOMAL ZAM DAM

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SATPARA DAM PROJECT

♦ Location Downstream of Satpara Lake on Satpara Nullah near Skardu, Northern Area, about 6 miles south of Skardu Town

Satpara Dam Project is one of the highest situated dams in the world and is located near Skardu city in Gilgit-Baltistan. This dam has a storage capacity of 93,000 Acres Feet of water whereas the command area consists of 15,536 Acres and it will generate 17.3 MW of electricity on completion. This dam was conceived to provide water and power in Skardu City (Baltistan). This area is suitable for producing vegetables & fruits and this project will play significant role in the social and economic uplift of Skardu area (Baltistan).

♦ Salient Features � Type of Dam

� Height of dam � Length of dam � Gross Storage � Live Storage � Command Area � Power Generation � EIRR

Earth Fill 128 Ft 560 Ft 0.093 MAF 0.053 MAF 15536 Acres 17.3 MW/ 105.51 Gwh 12.9%

♦ Commencement Date As per Original PC-I Sep, 2002 / Actual April 2003

♦ Completion Date Actual / Revised Actual Dec 2006/Revised Jan. 2012 (P/H # 3&4 Feb. 13)

♦ Financial Status Local Foreign Total (Rs. Million)

Rev: Approved PC-I Cost (03.09.09) 3,925.342 554.679 4,480.021 Expenditures upto 30.06.2012 2900.033 1917.627 4817.660 PSDP Allocation for 2012-2013 100.000 200.000 300.000 Expenditures during the Month 3.949 - 3.949 Current F/Y Expenditures 8.929 - 8.929 Upto date Expenditures 2,908.962 1917.627 4,826.589

o Physical Progress 100% against 100% (P/H # 3&4 80.43 % against 87.00%) o Financial Progress 107.74 % against 100 %

USAID has signed an agreement with WAPDA to provide US$ 26 Million for Satpara Dam Project on 07.01.2011. USAID has released US$ 21.485 Million so far.

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US DELGATION VISIT TO SATPAR DAM

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REPAIR AND MAINTENANCE OF UNITS 1, 3 & 4 OF TARBELA DAM WAPDA operates Tarbela Hydroelectric Power Station having total installed capacity of 3478 MW from 14 Generating Units installed on three Power Tunnels. The plant is capable to deliver upto 3700 MW during high flow months of summer but sometimes fails to reach its maximum capacity due to the several reasons e.g. Generator windings for Units 1, 3 & 4 (175 MW each) have developed problems due to aging; there is shortage of essential spare parts for extensive maintenance of Generating Units, and maintenance skills are deficient due to lack of training.

An assistance agreement for implementation of Emergency Supplemental Funding has been concurred between Government of Pakistan through Ministry of Water & Power and USAID. The Implementation Letter (IL) dated January 13, 2010 commits an amount of US$16.5 million for carrying out a program to support the Project Funding will be provided through Reimbursement Agreement to be signed with WAPDA. The activity is estimated to be completed within 24 months from date of IL. Agreement was signed with USAID in May 2010.

Accordingly, WAPDA has planned to implement a short term Repair & Maintenance program which includes replacement of old Class-B Winding of Generators 1, 3 & 4 with the latest Class-F Winding which will enhance output of these machines under overload conditions by about 100 MW and additional energy generation of 200 GWh per year. Reliability of the Power Plant is also likely to increase due to replacement/upgradation of some old systems.

An agreement has been signed between GoP/WAPDA and USAID for an assistance of $16.5 million for this project. The hydropower equipment for Rehabilitation of Tarbela Power House (1st Trench) has been arrived at Tarbela. Unit 4 has been rehabilitated and generating 195 MW as against 87 MW generating earlier and Unit 1 has also been rehabilitated and generating 195 MW as against 175 MW generating earlier. Rehabilitation work of Unit 3 is started from February 17, 2012 and is in progress.

USAID has signed an agreement with WAPDA to provide US$ 16.5 Million for the Project. USAID has released US$ 11.250 Million so far.

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US DELEGATION VISIT TO TARBELA POWER HOUSE

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NEW PROJECTS FOR US ASSISTANCE

• Diamer Basha Dam Project

• Kurram Tangi Dam Project

• Darawat Dam Project

• Nai Gaj Dam Project

• Naulong Dam Project

• Garuk Dam Project

• Pelar Dam Project

• Allai Khwar Hydropower Project

• Duber Khwar Hydropower Project

• Khan Khwar Hydropower Project

• Jinnah Hydropower Project

• Up-gradation & Refurbishment of Mangla Power Station

• Up-gradation, Rehabilitation & Modernization of WARSAK Power Station

• Treatment of Effluent Water of RBOD (Pilot Project)

• Appointment of General Consultants

• Training & Capacity Building

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DIAMER BASHA DAM PROJECT Diamer Basha Dam Project the first mega dam project conceived after Tarbela Dam Project at a cost of US$ 11.178 billion will play significant role in the economic development of Pakistan. The project is located on Indus River, about 315 km upstream of Tarbela Dam, 165 km downstream of the Gilgit-Baltistan (GB) capital Gilgit and 40 km downstream of Chilas. The proposed dam would have a maximum height of 272 meters, and impound a reservoir of about 8.1million acre feet (MAF), with live storage of more than 6.4 MAF and produce 4500 MW of power generation. The mean annual discharge of Indus River at the site is 50 MAF. Thus the dam will impound 15% of the annual river flow. It will extend the life of Tarbela Reservoir by blocking the sediments and additional annual Generation at Tarbela would be 1111GWh. With the creation of massive infrastructure leading to overall socio-economic uplift of the area and better standard of living of people, this project will generate employment opportunities, particularly to the locals, during the construction and operation. The dam is located at the boundary of Gilgit-Baltistan (GB) and North Western Frontier Province (NWFP) in such a way that the right abutment and the right Power House is in GB while the left bank of the dam and the left Power House is in NWFP. ECNEC has approved this project at a cost of Rs.894,257 million (US$ 11.178 billion). The Project will pay back its cost in 8 years with an EIRR of 18%.

WAPDA carried out the feasibility of Diamer Basha Dam Project from 2002 to 2004 and Detailed Engineering Design from 2005 to 2008. during this period field investigations comprising of Drilling, Aditing, Field Testing & Topographic Survey also carried out. WAPD spent US$ 58.734 million on these works including Consultancy charges, Admn & other expenses.

WAPDA started the Land Acquisition process in 2010-11. an amount of US$ 25 million has been paid to Government of Gilgit-Baltistan for Land Acquisition. The priority land for project colony infrastructure and Land for one model village for the affectees has been acquired. The acquisition of Land for Dam foot prints, other structures and the reservoir is in progress. The required land would be acquired in three years with an estimated cost of US$ 513.37 million.

WAPDA intends to start the construction of infrastructure; WAPDA Offices, Consultants Office WAPDA Colony roads etc. Model Villages, Right Bank Periphery road and relocation of KKH in project area before the start of the main project which shall require US$ 461 million.

Construction of small Hydropower Stations on Nullahs for providing power during construction of Main Dam and project colony / model villages shall require funding of tune of US$ 43.925 million.

Implementation of the Diamer Basha Dam appurtenant structures shall be through international competitive bidding comprising of the five lots. Funding requirement for these lots are US$ 5,027 million.

PROJECT BENEFITS

• Availability of about 6.4 MAF annual surface water storage for supplementing irrigation supplies during low flow periods

• Harnessing of renewable source of clean and cheap energy through installed capacity of 4500 MW

• Average Annual Generation 19208 GWh

• Extend Life of Tarbela reservoir by blocking the sediments

• Additional Annual Generation at Tarbela 1111GWh

• Reduction of dependence on thermal power, thus saving foreign exchange

• Employment opportunities (direct employment = 70,426 persons & indirect employment = 2.78 million persons), particularly to the locals during the construction and operation 7633 worker to be trained.

• Creation of massive infrastructure leading to overall socio-economic uplift of the area and standard of living of people

• The Project will pay back its cost in 8 years

FINANCIAL BENEFITS

• Financial Benefits of electricity produced – US$ 1.9 Billion (19 Billion units x 10 cents)

• Financial Benefits of water stored – US$ 0.660 Billion

• Water impounded by reservoir shall help to mitigate downstream flood losses. The avoidance of flood damages cost would be even much more than Rs.2, 331 million per annum.

• Savings in Foreign Exchange of Equivalent electricity on imported oil - US$ 2.85 Billion

• Carbon Credit Benefits – US$ 0.300 Billion

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PRESENT STATUS: • Detailed Engineering Design of Diamer Basha Dam Project (DBDP) was completed in June-2008.

• PC-I for Land Acquisition and Resettlement was approved by Executive Committee of National Economic Council (ECNEC) on 6.11.2008 for Rs. 60 billion.

• Main PC-I for DBDP was approved by ECNEC on 20.08.2009 for Rs.894.257 billion.

• Resolution on Consensus of Diamer Basha Dam Project approved from Council of Common Interest (CCI) on 18.07.2010 headed by Prime Minister of Pakistan.

• Bridge at Thakot on Indus River is completed by NHA for transportation of material and heavy machinery for construction of Diamer Basha Dam Project.

• Priority Land Acquisition has started.

• Rs.6.563 billion have been released to the Government of Gilgit-Baltistan for acquisition of land and 1783 Acres of land has been acquired.

• Rs.262 million was released in to D.C. Kohistan for acquisition of land and 162 Acres land has been acquired of Khyber Pakhtunkhwa area.

• A vocational Training Institute has been setup.

• Inauguration ceremony for commencement of works of Diamer Basha Dam Project has been carried out by the Prime Minister of Pakistan on 18.10.2011.

PROJECT IMPLEMENTATION

Implementation of the dam appurtenant structures shall be through international competitive bidding comprising of the following five lots:-

US$ Million

Sr. No.

Description of work Local Foreign Total Cost

Const. Period (Yrs.)

1. Contract Lot-1 (Concrete Dam and Related Structures including Diversion Tunnels and Permanent Access Bridge)

1,096 731 1,827 9

2. Contract Lot-2 (Underground Works and Related Structures (Left and Right Banks)

512 173 685 6.4

3. Contract Lot-3 (Hydro-Mechanical Equipment and Hydraulic Steel Structures)

42 380 422 8

4. Contract Lot-4 (Power Plant Generation Equipment (Left and Right Bank)

103 927 1,030 7

5. Contract Lot-5 (Electrical High Voltage Equipment and Power Plant Electrical Equipment (Left and Right Bank).

109 954 1,063 7

Total 1,862 3165 5,027

Strategy

• After approval of FODP/ADB Report on Water Sector Task Force by Federal Cabinet new strategy to be adopted.

• In view of the reluctance of World Bank/ADB for financing Diamer Basha Dam Project an alternate financing plan needs to be prepared.

• GoP to provide funds for land acquisition. • 80% of the cost of project will be met through loan/supplier credit/buyer’s credit. • 20% of the cost of the project will be met through Govt. funding, domestic loan/local bonds (Sukuk) and

PSDP. • Foreign financing will be made through Donor Agency/ADB//IDB/Middle East Donors/Buyer Credits/Supplier’s

Credit • Special request will be made to Islamic Development Bank, Asian Development Bank, Kuwait Development

Fund, Saudi Development Fund, Qatar Development Fund, Abu Dhabi Fund for investing in Diamer Basha Dam Project.

• Special request may be made to USAID to support this project as signatory project in Pakistan. • Consortium will be made comprising of Chinese Turkish and other Civil Contractors. • Consortium will also be made for supplying Electro-Mechanical equipment as Supplier’s Credit.

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Tentative Summary of Updated Capital Cost (June 2012 Prices)

Sr. No. Component Estimated Cost (US$ Million) Potential

Financing Local a)

Foreign Total

A. Indirect Costs

I Land Acquisition and Resettlement :

i. Land Acquisition 542 - 542 GoP (Rs. 50 billion equivalent)

ii. Resettlement & Incidentals 721 - 721 GoP / Sukuk Bonds (Rs. 66 billion equivalent)

iii. Total 1,263 - 1263 (b)

II KKH Relocation from Shatial to Raikot (141 km)

363 - 363 (c) USAID / Donors

III Project Colony in Thor Valley 75 - 75 (d) GoP (Rs. 6.9 billion equivalent)

Sub-Total (A) 1,701 - 1,701

B. Direct Costs e)

IV Concrete Dam & Related Structures Including Diversion Tunnels & Permanent Access Bridge (Lot 1)

1377 781 2,157 EXIM / Local Pakistan Banks

V Construction of Underground Works & Related Structures (Lot 2)

643 185 828

VI Hydraulic Steel Structure & Hydro-Mechanical Equipment (Lot 3)

53 406 459

Supplier's Credit VII Power Plant Generation Equipment (Lot 4)

129 990 1,120

VIII Electrical HV Equipment and Power Plant Electrical Equipment (Lot 5)

137 1019 1,156

Sub-Total (B) 2,339 3,381 5,719

C. Incidental Costs

IX Engineering & Project Management including Authority's Overheads 6% of (B)

140 203 343 GoP

X Physical Contingency 3% of (B) 70 101 171

Sub-Total (C) 210 304 514 D. Total Base Cost (A+B+C) 4,250 3,685 7,935

E. Other Costs

XI Duties & Taxes 110 - 110 Exemption by GoP

XII

Escalation During Construction on (B+C+E) at:

1,205 479 1,684 Donor's liability 6.5% on Local Component 2% on Foreign Component

XIII

Interest During Construction (IDC) on (B + C + E + Escalation) at:

3,943 - 3,943

Deferred payment from power revenues

9.96% on Local Component 12% on Foreign Component

Sub-Total (E) 5,258 479 5,737

F. Total Financial Cost (A to E) 9,508 4,164 13,672

a) Converted at the average June 2012 parity rate of 1 US$ = Rs. 92.00 b) Cost of PC-I (WAPDA) updated to June 2012 price level including additionalities to conform to ADB's Social Safeguards. c) Cost of PC-I (NHA) escalated by 46% on the basis of increase in Consumer Price Index from January 2009 to June 2012. d) Based on actual contract awards / lowest evaluated bids for most of the packages. e) Updated by applying escalation factors for the period from March 2008 to June 2012 separately for local and foreign

components.

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CURRENT DEMAND The project was placed in the FODP conference, wherein the Donors assured their commitment to fund this project. Middle East Donors, particularly Islamic Development Bank (IDB)/Saudi Fund and Kuwait Fund, has consented for a financial assistance of US$ 2 billion whereas Supplier’s Credit will be available for US$ 2.5 billion for the supply of electro-mechanical equipment. WAPDA expects US$ 1.0 billion shortfall in its financing plan and accordingly USAID is requested to extend US$ 1.0 billion Financial Assistance for this project over a period of five years for the execution of initial civil works and land acquisition for this mega project. Keeping in view the urgency of the situation, an amount of US$ 200 million is required on priority basis for the year 2011-12 is requested.

FUTURE FINANCING PHASING Financial Year Rs. Billion US$ Million

2011-12 17.0 200 2012-13 34.0 400 2013-14 34.0 400

DIAMER BASHA DAM STAKEHOLDERS SEMINAR

20

21

KURRAM TANGI DAM MULTIPURPOSE PROJECT

Location The proposed project is located on Kurram River in North Waziristan Agency about 22 km upstream of Kurram Garhi Head works and 32 KM North of Bannu City in NWFP. This project was conceived by WAPDA for a multipurpose dam in North Waziristan on Kurram River with storage of 1.20 MAF of water and power generation of 83.4 MW on completion. It will irrigate 362,380 Acres of land and will usher a positive impact on the socio economic conditions of Tribal Areas and particularly North Waziristan Agency. It will not only irrigate the barren lands but further produce electricity & generate employment opportunities during construction and maintenance of the project. This project will play a significant role, in providing economic & social stability in North Waziristan Agency by offering economic opportunities and employment generation for local people. Salient Features

• Dam Height 322 ft • Gross Storage 1.20 MAF-1.48 BCM • Live Storage 0.90 MAF-1.11 BCM • Power Houses (5 Nos) 83.4 MW (350 GWh) • Command Area 3,62,380 ACRES (including new area of 84,380 Acres) • Supplementing existing

System of Civil & Marwat Canals

277,500 Acres

• EIRR 16.12% Project Benefits • Irrigated Agriculture Development

• Hydropower generation • Socio-economic uplift of the area. • Employment opportunities during the construction and maintenance of the Project. • Development of Agriculture/Fisheries.

PC-I Cost (Based on Revised Estimate)

Rs. 59 Billion (including Rs. 5.37 Billion FEC)

FINANCING OF KURRAM TANGI DAM PROJECT

Total Estimated Cost as per revised PC-I US$ 700 million Request for US Assistance for Construction US$ 543 Million

FUTURE FINANCING PHASING

Financial Year Rs. Billion US$ Million

2011-12 0.17 2

2012-13 7.0 83

2013-14 17.9 210

2014-15 16.7 196

2015-16 18.2 214

22

KURRAM TANGI DAM PROJECT ABSTRACT OF COST ESTIMATES

Sr. No.

Description Local

Component (Million Rs.)

Foreign Component (Million Rs.)

Total Amount

(Million Rs.)

A. Kaitu Weir and Affiliated Structures - (7.1)

3,166.441 - 3,166.441

B. Main Dam, spillway, Power Houses and Affiliated Structures - (7.2)

11,510.822 - 11,510.822

C. Thal Canal & Affiliated Structures - (7.3)

6,655.758 - 6,655.758

D. Remodeling of Existing Canals / Vials - (7.4)

1,984.089 - 1,984.089

E. Electrical & Mechanical Equipment - (7.5)

- - -

E-1. Power House No. 1 (36.5 MW) 575.331 3,002.477 3,577.808

E-2. Power House No. 2 (11.0 MW) 185.762 969.437 1,155.199

E-3. Power House No. 3 (17.0 MW) 285.408 1,489.459 1,774.868 E-4. Power House No. 4 (18.5 MW) 299.594 1,563.489 1,863.083

E-5. Power House No. 5 (400 Kw) 16.683 87.065 103.749

E-6. Pump House 1.792 - 1.792

E-7. Transmission Line 89.700 - 89.700 Sub-Total of (E) 1,454.272 7,111.928 8,566.199

F. Preliminary Works (Residential Colony, Office etc.)

226.181 - 226.181

Total of H = (A + B + C + D + E +

F + G) 24,997.562 7,111.928 32,109.490

G. Land acquisition and resettlement cost

2,790.500 - 2,790.500

I. Physical Contingency at 3% of (H) 826.69 213.358 1,040.048

J. Authority's Over heads 2.25% of (H).

620.02 160.018 780.036

K. Engineering Services (Construction Supervision and Design Reviews) 3% of (H).

826.69 213.358 1,040.048

L. Security Arrangements etc. 3,619.000 - 3,619.000

M. Furniture, T&P, Vehicles etc. 201.526 - 201.526

Total N = (H + I + J + K + L + M) 33,881.986 7,698.662 41,580.648 Total Base Cost 33,881.986 7,698.662 41,580.648

O Escalation (local 6.5%, foreign 2.5%)

1640.45 375.310 2,015.760

Total cost 35,522.436 8,073.972 43,596.408

P IDC (14.23% & 3% Financal Risk) as per Planning Commission Instructions

13,710.560 2,124.030 15,834.590

Grand Total 49,232.996 10,198.002 59,430.998

US$ 699 Million

Note:- (i) Increased 15% on Works as Tribal Commission (ii) Increased Security Arrangement Cost as per FWO Estimates (iii) Increased IDC(14.23%) and 3% Financial Risk as per Planning Commission Guidelines.

23

DARAWAT DAM PROJECT • Location The proposed site for Darawat Storage Dam is located

at about 70 kms West of Hyderabad and 135 kms North East of Karachi across Nai Baran River in Thatta/ Jamshoro districts of Sindh.

• Salient Features • Dam Type Concrete Faced Rock fill

• Height of Dam 118 ft

• Reservoir Capacity 121,790 AF

• CCA 47,000 Acres

• Power Generation 0.45 MW

• Execution by WAPDA

• Supervision Consultants M/s NDC - CAMOES JV

• Contractor M/s Sinohydro – MAJ JV

• Donor Agency Government of Pakistan

• Date of Commencement July 2010

• Date of Completion June 2013

• Financial Status Local FEC Total (Rs. Million)

Approved PC-I Cost 3,175.000 - 3,175.000 Expenditures upto 30.06.2012 1,926.552 - 1,926.552 PSDP Allocation 2012-13 1,800.000 200.000 2,000.000 Expenditures during the Month 5.762 - 5.762 Current F/Y Expenditures 510.080 - 510.080 Upto date Exp: 2,436.632 - 2, 436.632

Physical Progress 60%

24

LOCATION MAP – NAI GAJ DAM PROJECT

25

NAI GAJ DAM PROJECT

• Location Nai Gaj Dam Project is proposed across Gaj River in the gorge area at the edge of Kirthar range at about 65 km (40 miles) north-west of Dadu city in Sindh Province

• Salient Features • Dam Type Earth Core Rock Fill Dam

• Height of Dam 194 ft

• Installed Capacity 4.2 MW

• Gross Storage Capacity 300,000 AF

• Dead Storage Capacity 140,000 AF

• Live Storage Capacity 160,000 AF

• Cropped Area 28,800 Acres

• Execution by WAPDA

• Detailed Engineering Consultants

M/s NESPAK

• Contractor M/s NEIE – SMADB JV

• Donor Agency Government of Pakistan

• Date of Commencement Not yet Commenced

• Date of Completion -

• Financial Status Local FEC Total (Rs. Million)

Approved PC-I Cost 16,924.000 - 16,924.000 Expenditures upto 30.06.2012 688.430 - 688.430 PSDP Allocation 2012-13 2,000.000 - 2,000.000 Expenditures during the Month 6.295 - 6.295 Current F/Y Expenditures 11.459 - 11.459 Upto date Exp: 699.889 699.889

Status:-

� PC-I amounting to Rs. 16.924 Billion approved by ECNEC in its meeting held on Sep. 3, 2009.

� Tenders for construction opened on July 16, 2010. Letter of Acceptance issued to

M/s NEIE – SMADB JV on 13.01.2011 (Bid Price = Rs. 38.702 Billion). Contract Agreement has

been signed on April 12, 2011. Letter of commencement issued on May 04, 2012.

� The Contractor mobilized to site with limited financing basis and established field camp /

mobilized equipments for the Project.

� M/s. Techno International JV appointed Project Supervision Consultants.

� Revised PC-I amounting to Rs. 26.240 Billion approved by ECNEC in its meeting held on Aug.

16, 2012.

26

NAULONG DAM PROJECT

LOCATION

The proposed dam site is located on Mula river at Sunt about 30 kms from Gandawa City in tehsil and district Jhal Magsi (Balochistan).

OBJECTIVES

– Irrigated agriculture development of 47,000 acres of culturable command area.

– Hydropower generation of 4.4MW.

– Flood Mitigation.

– Socio-economic uplift, poverty reduction and women emancipation.

SALIENT FEATURES

– Dam Type Earth fill

– Dam Height 186 ft

– Gross Storage 242,452 AF

– Live Storage 200,000 AF

– Culturable Command Area 47,000 acres

– Power Generation 4.4 MW

– Annual Energy 26.6 GWh

– Revised Project Cost Rs. 18.028 billion

CURRENT STATUS

• Feasibility study and detailed engineering design of the Project completed in 2009.

• PC-I amounting to Rs. 11.699 Billion approved by ECNEC in its meeting held on Sep. 3, 2009.

• Tenders for construction received and opened on April 17, 2010. Letter of intent issued to the lowest bidder M/s. Descon – Zargoon JV on April 12, 2011. Letter of Acceptance issued on May 10, 2012.

• During visit to China the President invited Chinese firms to participate for construction of Naulong Dam Project.

• Governor Balochistan and Chief Minister Balochistan assured Chinese Ambassador for providing full security arrangements for the construction firms especially the Chinese.

• M/s Descon & Sinohydro of China have signed a joint venture agreement as contractor for construction of the project.

• Memorandum of Understanding (MOU) for security arrangement for contractor concurred by Government of Balochistan.

• Expression of Interest (EOI) for construction supervision of the Project received on June 25, 2012. Six (06) firms / JV’s submitted EOI documents and are under evaluation.

• Revised PC-I amounting to Rs. 18.028 Billion approved by ECNEC in its meeting held on Aug. 16, 2012.

27

GARUK DAM PROJECT

LOCATION

The dam site is located about 47 kms south east of Kharan Town across Garuk River in District Kharan (Balochistan).

OBJECTIVES

- Storage of flood water for irrigated agriculture development of 12,500 acres of culturable command area.

- Hydropower generation of 300 KW.

- Socio-economic uplift, poverty reduction and women emancipation.

SALIENT FEATURES

– Type of Dam Earth Core Rock fill

– Height of Dam 184 ft

– Length of Dam 2,323 ft

– Reservoir Capacity 50,695 AF

– Culturable Command Area 12,500 acres

– Power Generation 300 KW

– Revised Project Cost Rs. 6.850 billion

CURRENT STATUS

• PC-I approved by ECNEC in its meeting held on September 3, 2009.

• Tenders of Garuk Dam on EPC basis invited on Oct 03, Nov 19, 2009 Feb. 20, March 24, October 20 and December 23, 2010. No bid received.

• WAPDA proposed the Project through local District contractors by subletting the various components to increase participation of the local community; local monetary benefits.

• Government of Balochistan suggested transferring the Project to I & P Department of Balochistan for execution.

• Revised PC-I is under preparation.

• No funds allocated in PSDP 2012-13 for construction of the Project.

28

PELAR DAM PROJECT

LOCATION

The dam site is located about 160 kms from Awaran Town in District Awaran (Balochistan).

OBJECTIVES

- Storage of flood water for irrigated agriculture development of 25,650 acres of culturable command area.

- Hydropower generation of 300 KW.

- Socio-economic uplift, poverty reduction and women emancipation.

SALIENT FEATURES

– Type of Dam Concrete Gravity

– Height of Dam 60 ft

– Length of Dam 714 ft

– Reservoir Capacity 99,175 AF

– Culturable Command Area 25,650 acres

– Power Generation 300 KW

– Revised Project Cost Rs.8.740 billion

CURRENT STATUS

• PC-I amounting to Rs. 1.692 Billion approved by ECNEC in its meeting held on September 3, 2009.

• Tenders of Pelar Dam on EPC basis invited on Sep. 30, Nov 12, 2009, Feb. 20, March 17, October 27 and December 29, 2010. No bid received.

• WAPDA proposed the Project through local District contractors by subletting the various components to increase participation of the local community; local monetary benefits.

• Government of Balochistan suggested transferring the Project to I & P Department of Balochistan for execution.

• Revised PC-I is under preparation.

• Funds amounting to Rs. 50 Million allocated in PSDP 2012-13 against a demand of Rs. 1,000 Million.

29

AKHP LAYOUT

BATGRAM

HELIPAD

BAUNA

BESHAM

ALLAI WEIR

BRIDGER.C.C

R.C.C

THAHKOTBRIDGE

CONTRACTOR'S

CAMP & COLONY

S/Y37 Km.

TO

MA

NS

EH

RA

TO BASHAMTHAKOT

ALLAI KHWARBRIDGE

ALLAI KHWAR

INDUS RIVER

POWERHOUSE

HE

AD

RA

CE

TU

NN

EL

S/Y

BANA

30

ALLAI KHWAR HYDROPOWER PROJECT ♦ Location On Allai Khwar, Left Tributary of Indus River near Besham

in District Battagram, Khyber Pakhtunkhwa

♦ Salient Features � Dam Height � Length of Headrace � Installed Capacity � Annual Energy � Gross Head � Objectives � EIRR

32.50m 2366 m 121 MW 463 GWh 697 m To Generate Electricity 23.97%

♦ Execution by WAPDA

♦ Consultants HHH Consultants NDC, LAHMEYER, BARQAAB, BAK, PES, EGC, RC, IDC & DMC

♦

Contractor

DEC Astron, VA Tech ♦ Donor Agency Government of Pakistan

♦ Date of Commencement June, 2003

♦ Date of Completion Actual Jan 2009 / Revised Oct,2011 Expected Oct, 2012

♦ Financial Status Local FEC F/LOAN Total (Rs. M)

Original PC-I Cost 5,124.284 3,453.540 - 8,577.824 Revised PC-I Cost 7,312.687 6,522.261 - 13,834.948

Expenditures upto 30.6.2012 5,261.974 3,327.478 2,315.596 10,905.048 PSDP Allocation 2012-2013 804.000 725.000 644.000 2,173.000

Expenditure During the Month 3.868 35.268 101.801 140.937 Current F/Y Expenditure 6.868 197.706 179.534 384.108 Upto date Expenditure 5,268.842 3,525.184 2,495.130 11,289.156

o Physical Progress 94.00% against 98.00%

o Financial Progress 81.60% against 81.44% Revised PC-I amounting to Rs. 13834.948 Million approved on 27.09.2011.

31

32

DUBER KHWAR HYDROPOWER PROJECT ♦ Location On Duber Khwar River, Right Bank Tributary of Indus

River near Patan in Kohistan District, Khyber Pakhtunkhwa

♦ Salient Features � Dam Height � Length of Tunnel � Gross Head � Installed Capacity � Annual Energy � Objectives

� EIRR

32 m (Concrete weir) 5243 m 540 m 130 MW 595 GWh To Generate Electricity 32.12%

♦ Scope of Work The project envisages installation of 130 MW Hydropower plant along with allied transmission and grid facility. The plant will generate 595 GWh/annum of electricity.

♦ Execution by WAPDA

♦ Consultants HHH Consultants, NDC, LAHMEYER, BARQAAB, BAK, PES, EGC, RC, IDC & DMC

♦ Contractor CWH-HE, VA Tech

♦ Date of Commencement June, 2003

♦ Date of Completion Revised Aug, 2011 / Expected April, 2013

♦ Financial Status Local FEC Total (Rs. Million)

Approved PC-I Cost on 8,068.655 8,255.821 16,324.476 Expenditures upto 30.6.2012 7,237.218 6,835.513 14,072.731 PSDP Allocation 2012-2013 1,716.920 2,142.080 3,859.000

Expenditure during the Month 21.050 21.430 42.480 Current F/Y Expenditure 476.992 171.290 648.282

Upto date Expenditure 7,714.210 7,006.803 14,721.013

o Physical Progress 88.00% against 92.00% o Financial Progress 90.18% against 90.15%

33

34

KHAN KHWAR HYDROPOWER PROJECT ♦ Location Khan Khwar River, A Tributary of Indus River in District

Shangla (Khyber Pakhtunkhwa) ♦ Salient Features � Dam Height

� Length of Headrace Tunnel

� Gross Head � Objectives � Installed Capacity � Annual Energy � EIRR

30 m 4540 m

257 m To Generate Electricity 72 MW 306 GWh 29.56%

♦ Scope of Work The project envisages installation of 72 MW Hydropower plant along with allied transmission and grid facility. The plant will generate 306 GWh/annum of electricity.

♦ Consultants HHH Consultants, NDC, LAHMEYER, BARQAAB, BAK, PES, EGC, RC, IDC & DMC

♦ Contractor CWH-HE, DEC

♦ Execution by WAPDA

♦ Date of Commencement June, 2003

♦ Date of Completion Actual June 2006 / Expected March 2012 (MoU-2)

♦ Financial Status Local FEC Total (Rs. Million)

Original PC-I Cost 2,718.607 2,644.098 5,362.705

Revised PC-I Cost 4,573.688 3,727.791 8,301.479

Expenditures upto 30.6.2012 4,927.132 4,301.934 9,229.066

PSDP Allocation 2012-2013 - - -

Expenditure during the Month 4.820 - 4.820

Current F/Y Expenditure 8.420 - 8.420

Upto date Expenditure (O&M) *8.420 - *8.420

* There is no PSDP Allocation for F/Y 2012-13. Expenditure is chargeable to O&M Budget.

Physical Progress

o Physical Progress 99.90 % against 100 % o Financial Progress *111.17 % against 100 % (upto 30.06.2012)

* 2nd revised PC-I cleared by CDWP at revised cost of Rs. 10,732.788 Million on 18.06.2012 [

- Testing/commissioning of unit # 2 started on Oct, 04. 2010. - Testing/commissioning of unit # 1 started on Oct, 19. 2010. - Commercial operation started w.e.f. Nov 08, 2010.

35

36

JINNAH HYDROPOWER PROJECT

♦ Location The Project is located on right side of Jinnah Barrage on Indus River about 5 km downstream of Kalabagh Town and 234 km from Islamabad.

♦ Salient Features � Installed Capacity � Annual Energy � Gross Head � Design Discharge � No. of Units � Objectives

96 MW 688 GWh 4.88 m 2400 m3/sec 8 units To Generate Electricity

♦ Consultants ACE (JV) NESPAK, NDC, & MWH. EASEPAK,DMC

♦ Contractor: M/s Dongfeng Electric Corporation (DEC) of China

♦ Date of Commencement as PC- I February 2006

♦ Date of Completion Actual/Revised

Expected Dec 2012

♦ Financial Status

Local FEC Total (Rs. Million)

Approved PC-I Cost 6,935.950 6,610.850 13,546.800

Expenditures upto 30.6.2012 6,753.847 6,528.000 13,281.847 PSDP Allocation 2012-2013 1,032.000 - 1,032.000 Expenditure during the Month 18.570 - 18.570

Current F/Y Expenditure 27.664 - 27.664 Upto date Expenditure 6,781.511 6,528.000 13,309.511

• The Jinnah Hydropower Project is being financed through supplier’s credit. The utilization of Foreign Loan / supplier’s credit in above statement based on

figures provided by the M/s. DEC China. However, there is no foreign loan utilization in Project Books and no IPC’s are submitted by the Contractor as it is an

EPC / Turnkey basis Project.

Physical Progress / Status

PC-I for the Construction of O&M Staff Colony approved on 19.11.2009 for Rs. 253.07 million Unit No. 1: The Unit is in commercial operation. Unit No. 2: 72 Hours performance test of unit is under progress. Unit No. 3: The Unit is in commercial operation since 15.08.2012. Unit No. 5: 72 Hours commissioning test of the unit is expected to start on 15.09.2012.

o Physical Progress 98.00 % o Financial Progress *15.00 %

*Being an EPC contract only mobilization advance of 15% has been paid to the contractor; Rest 85% is arranged under supplier’s credit by the contractor.

37

REPAIR & MAINTENANCE OF TARBELA POWER STATION Tarbela Dam is one of the world’s largest earth and rock filled dam. It is one of the world greatest resources development projects built on one of the world’s largest river Indus called Abbasin or Father of Rivers. Tarbela Power Station is located on the right bank of river Indus. Power Station is equipped with fourteen generating units having total capacity of 3478 MW. It is the biggest hydel power station completed in four phases since 1977 to 1993-93. The total power potential of the station is 3478 MW with 14 generating units constitutes about 25~35% of the total power presently generated in the country. The existing equipment of Tarbela Power Station are in service since commissioning and reliability of most of the equipment have considerably been reduced and the station desperately require planned repair and maintenance programme. The planned repair and maintenance programme will enhance reliability and will ensure smooth operation of the station by minimizing prolonged and forced outages in one way or the other. The sever power crises in the prevailing situation have created energy crises and ultimately lead to public unrest and put the country economic stability at stake due to prolonged interruption. The procurement of spares/equipment demanded under additional requirement will enhance the reliability of the station in the following manner : • Help to improve the reliability factor of the plant.

• To minimize forced outages.

• Help to reduce the energy crises.

• To improve the availability of units.

• Will enhance the life of units.

The close analysis shows that the proposed R&M programme of Tarbela Power Station will earn WAPDA 1973 Million KWH per month or Rs.19730 Million/US$ 232 Million per month.

� If power transformer of Units 1~10 goes out of order due to some fault, the relevant unit

will also remain out till the availability of the transformer. The authority in shape of

revenue will suffer 0.412 Million US$ per day and the station utilization factor will also

go down by 5% at least.

Similarly, if power transformer of any unit from Units 11~14 goes out or order due to fault then the authority will suffer by a loss of 0.819 Million US$ per day till the availability of new power transformer.

� If 220KV breaker of unit is develops fault, the relevant unit will remain out till the

availability of breaker. The station and authority will suffer 0.412 Million US$ per day till

the availability of the breaker. Also utilization factor of the station will reduce by 5% at

least. Similarly if breaker of 220KV transmission line develops fault, the station and

authority will suffer a revenue loss of 0.37 Million US$ per day till the availability of the

breaker.

� If stator core of a unit is damaged, then the authority will duffer a revenue loss of 0.412

Million US$ per day till the availability and erection of the new stator.

� If 2 Nos. 30 ton bridge cranes for lifting the rotor of Units 1~10 goes out of order, then

no alternate arrangement is available for lifting the rotor and the unit will remain out till

38

the availability or procurement and installation of new cranes. The authority will suffer a

huge loss of amount till the availability of the cranes.

� 230V DC battery system comprising of 115 cells if went out of order, then protection

system of all Units 1~10 will not work and the units will remain shut down till the

availability of new batter set. The authority will suffer a revenue loss of huge amount.

Estimated Cost US$ 100 million Request for US Assistance US$ 100 Million

FUTURE FINANCING PHASING

Financial Year Rs. Billion US$ Million 2011-12 0.76 8.5 2012-13 5.35 59.5 2013-14 2.9 32.0

39

UP-GRADATION AND REFURBISHMENT OF GENERATING UNITS OF MANGLA POWER STATION Mangla Dam Project completed in 1967 is located on River Jhelum at about 120 Km from Islamabad. The Power House was completed in four stages, the initial phase comprising four units of 100 MW each was completed in 1967~1969. The first extension of Units 5~6 (2X100 MW) was completed in 1974 while second extension comprising units 7~8(2X100 MW) was completed in 1981. The project attained its maximum capacity of 1000MW with the final extension of units 9&10(2X100 MW) in 1993-94.

Mangla reservoir capacity reduced to 4.674 MAF from 5.88 MAF due to sedimentation. As such Raising of Mangla Dam height by 30 ft. was carried out (2004~2009). The Project will provide additional water storage of 2.88 MAF, increase of water head by 40 ft and additional power generation of 644 GWh per annum will be achieved.

In the light of increase in aforesaid parameters, WAPDA intends to carry out a Feasibility Study for Up-gradation & Refurbishment of the old Generating Units and Allied Equipment of Mangla Power Station to ensure their optimized, reliable and sustainable operation in the Post Raised Mangla Dam Scenario. Electrical & Mechanical Equipment after having spent nearly 40 years of their useful lives have deteriorated due to aging effects resulting in reduction of efficiency and dependability.

The Feasibility Study is aimed to assess the present operating conditions of existing Civil Structures & Plant Machinery, Study of various options of Refurbishment of E&M Equipment and to recommend the most viable option for Up-gradation / Refurbishment of Power House Generating Units for achieving optimum benefits as a result of enhanced water availability and increased head after Mangla Dam Raising.

PROJECT COST

Cost of the Consultancy Services for Feasibility Study is US$ 2.0 Million. Total cost of the Rehabilitation Project is estimated to be US $ 518 Million.

PRESENT STATUS M/s MWH (USA) – NESPAK (Pakistan) JV have been engaged to carry out Feasibility Study of the Project. The Consultancy Agreement was signed in 27th April 2011 with eight (08) months completion time. Feasibility study submitted by consultants in December, 2011 and is under evaluation/approval by WAPDA. After which Detail Engineering Design, preparation of Tender Documents etc. will be started, requiring six (06) months period, followed by the Bidding.

FINANCIAL PHASING (Million US$)

Component Year

Total 2012 2013 2014 2015 2016 2017

Consultancy Services 8 5 5 5 5 5 33

Project Construction Cost 10 50 100 125 125 75 485

Total 18 55 105 130 130 80 518 USAID has shown interest to finance the subject Project.

FUTURE FINANCING PHASING Financial Year Rs. Billion US$ Million

2012 1.6 18 2013 4.7 55 2014 8.9 105 2015 11.0 130 2016 11.0 130 2017 6.8 80

40

UP-GRADATION, REHABILITATION AND MODERNIZATION OF WARSAK HYDROELECTRIC POWER STATION

Warsak Hydel Power Station is located on River Kabul at 30 KM in North – West of Peshawar. The Project was completed under Colombo Plan under two phases and financed by Canadian government. The first phase completed in 1960 consisted of construction of Dam, irrigation tunnels and installation of four power generating units, each of 40 MW capacity with 132 KV transmission system which was completed in 1960. Two additional generating units each of 41.48 MW capacities were added in 1980-81 in the second phase. The total installed capacity of the station thus became nearly 243 MW.

WAPDA intends to carry out a Feasibility Study for Rehabilitation, Up-gradation & Modernization of Electrical & Mechanical Equipment of Warsak Hydroelectric Power Station to ensure its reliable and sustainable operation at the total installed capacity of 243 MW. The Electrical & Mechanical Equipment of the existing units having spent 50 years (Units 1~4) and 30 years (Units 5~6) of their useful lives, have deteriorated due to aging effects resulting in reduction of reliability and dependability.

The Feasibility Study is aimed to study and determine viable solutions and required Works for Rehabilitation, Up-gradation and Modernization of old E&M Equipment, recommend necessary remedial measures to overcome the defects in Civil Structures and to carry out Sedimentation Management Studies. preparation of Detail Design, Tender Documents and PC-I for Warsak Rehabilitation Project will also be a part of the required Consultancy Services.

PROJECT COST Cost of Consultancy Services for Detail Design etc. is US$ 4.0 Million. Total cost of the Project is estimated to be US $ 308 Million.

PRESENT STATUS Joint Venture of RSW (Canada)-DCE (Pakistan) has been appointed as Consultants to carry out Feasibility Study, Detail Engineering Design and Tender Documents with 12 months completion time.

FINANCIAL PHASING (Million US$)

Component Year

Total 2012 2013 2014 2015 2016

Consultancy Services 4 4

Project Construction Cost - 42 71 102 90 305

Total 4 42 71 102 90 309

FUTURE FINANCING PHASING

Financial Year Rs. Billion US$ Million

2012 0.34 4

2013 3.6 42

2014 6.0 71

2015 8.7 102

2016 7.7 90

41

APPOINTMENT OF GENERAL CONSULTANTS

WAPDA is going to launch mega projects such as Diamer Basha Dam, Tarbela Dam 4th

Extension, Kurram Tangi Dam, Munda Dam etc. etc. wherein the services of General

Consultants of world repute will be required on priority basis to build the capacity to meet the

challenges. It is worth mentioning that when the replacement work of Indus Basin System was

initiated M/s. Harza (USA) was hired as General Consultants which helped WAPDA to build its

capacity for building mega projects like Tarbela Dam, Mangla Dam, Chashma, Link Canals

etc. At this time, there are greater challenges like Global Warming on climatic effects, Hydro

Power Potential, Lining of Canal, Treatment of Saline Water, Underground Water Storage,

initiatives require services of General Consultants to steer WAPDA in this difficult situation.

The estimated expenditure to be incurred on hiring the services of General Consultants is

about US$ 50 million for a period of 10 years whereas the request for 2011-12 will be about

US$ 3 million.

COST ESTIMATE (2011-2020)

AMOUNT

� Annual Foreign Cost = US$ 3 Million

� Annual Local Cost = Rs.150 Million

� Total Budget Cost = 10 Years

- Foreign = US$ 30 Million

- Local = Rs.2366 Million

42

TRAINING & CAPACITY BUILDING – US$ 21 Million

i. WAPDA Administrative Staff College Islamabad

• Revitalization of Hardcore Training Activities at WAPDA Administrative Staff College

under USAID Economic Growth Program has been worked out with financial implication

of approximately Rs. 150 Milllion. (US$ 1.9 Million)

ii. WAPDA Engineering Academy Faisalabad

• Revitalization of Hardcore Training Activities at WAPDA Engineering Academy

Faisalabad under USAID Economic Growth Program has been worked out with

financial implication of approximately Rs. 478.333 Million. (US$ 5.98 Million)

iii. WAPDA Hydel Training Center Mangla

• It has been planned to convert WAPDA Training Centre Mangla into a high quality

Training Academy duly equipped with modern laboratories having latest machinery and

teaching techniques under USAID Economic Growth Program.

• Approximate Cost for revamping the training activities of Hydel training Centre Mangla

will be Rs. 85 Million. (US$ 1.06 Million)

iv. Capacity Building

• A number of run of river projects on River Indus and its tributaries are proposed to be

constructed in Pakistan. These projects are financially viable and necessary for

reducing the power tariff to be within the reach of common man. For implementation of

these projects WAPDA needs technical assistance in capacity building; especially of

Engineers training in Tunneling, Roller Compacted Concrete dam construction and

special tests of Rock mechanics. (US$ 2 Million)

• Central Material Testing Laboratory established with UNDP grant in 1980s in order to

carry out the investigations and tests for Hydropower and other projects. It needs

upgradation to carryout special tests especially for large concrete dams.

(US$ 5 Million)

• Pakistan Snow & Ice Hydrology Project (PSIHP) is a research project on high altitude

hydrology in relation to Snow and Ice regime basins in the Northern Areas of Pakistan.

Up-gradation and improvement is required to install new gauges, equipment,

implementation of remote sensing technology, GIS and training to WAPDA engineers.

(US$ 5 Million.)

43

TREATMENT OF EFFLUENT WATER OF RBOD (PILOT PROJECT)

• WAPDA in line with the directives of the President of Pakistan in October 2009, engaged

M/s EASE-PAK Consultants to carryout the detailed feasibility study with a completion period of six months.

• The Consultants have submitted the draft feasibility study which is under review with WAPDA.

• The initial findings are:

• The project is technically feasible, economically viable and environment friendly.

• In-situ analysis of effluent through Prototype plant is planned to authenticate the exact quantity of recoverable salts.

• The Prototype laboratory plant has been shifted from USA and is functioning on Site since 15th May, 2010.

• The RBOD effluent must be used as such or after treatment for drinking, agriculture, fishery or other economical uses.

• The excess quantity of Parameters like calcium carbonate, magnesium make effluent harder which is hazardous for irrigation. After Treatment, excess quantity of calcium carbonate and magnesium shall be removed.

FLOWS AND QUALITY IN RBOD (RD + 93 MNV DRAIN)

SEASON FLOWS (cfs) Total Dissolved Solids

(PPM) Sodium Adsorption

Ratio (SAR) Residual sodium Carbonate (RSC)

Kharif 1145 690 – 1900 6-9 0 Rabi 198 1910 – 8360 7-16 0

Useable Flows = 28% (376 cfs) Marginal Flows = 23% (309 cfs) Hazardous Flows = 49% (658 cfs) Treatment Plants to be Installed = 5 Nos. (40 cfs each)

Benefits of Pilot Project • 40 cfs of water after treatment will irrigate upto 10,000 acres of barren land • Project Base Cost. = Rs.3353 M • Project Revenues (Annual) = Rs. 643.68 M • Project O&M Cost (Annual) = Rs. 237.40 M • Project Life = 30 years • Benefit Cost Ratio = 1.18:1 • EIRR = 15.06 %

Total Project:

• Total additional water available after treatment 985,000 AF • Additional area to be irrigated 350,000 Acres • Net annual benefits (Revenue) Rs13.227 Billion • Cost of one plant of 40 cfs (Pilot Project) Rs.3.353 Billion/US$ 40 Million • Cost of five plants of 40 cfs each Rs16.765 Billion/US 200 Million

FUTURE FINANCING PHASING Financial Year Rs. Billion US$ Million

2011-12 0.4 5 2012-13 0.4 5

44

SUMMARY OF USAID FINANCIAL ASSISTANCE COMMITTED

(US$ Million)

Total Cost Committed Released so

far

Under Implementation Projects

Gomal Zam Dam (South Waziristan) – Dam & Irrigation Portions and Waran Canal System

150 92 55.089

Satpara Dam (Gilgit-Baltistan) 52 26 21.485

Repair & Maintenance of Units 1, 3 & 4 Of Tarbela Dam

16.5 16.5 11.250

Total: 134.5 87.824

SUMMARY OF USAID FINANCIAL ASSISTANCE REQUESTED

US$ Million

New Projects

Total Cost

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

Total

Diamer Basha Dam (KPK/Gilgit Baltistan)

11178 200 670 657 1527

Kurram Tangi Dam (North Waziristan)

700 2 83 210 196 214 705

Repair & Maintenance of Units Tarbela Power Station

100 8.5 59.5 32 100

Darawat Dam 104 20 20

Nai Gaj Dam 292 10 10

Naulong Dam 177 10 10

Garuk Dam 73 10 10

Pelar Dam 93 10 10

Allai Khwar 143 26 26

Duber Khwar 272 20 20

Khan Khwar 138 4 4

Jinnah 226 4 4

Upgradation (E&M) of Mangla Hydel Power Station (AJK)

518 2 16 55 105 130 130 80 518

Upgradation (E&M) Warsak Hydel Power Station (KPK)

312 2 2 42 71 102 90 309

Appointment of General Consultants

50 3 3 3 3 3 3 18

Training & Capacity Building 21 2 5 5 5 5 22

Treatment of Effluent Water of RBOD (Pilot Project)

40 5 5 10

Total: 338.5 843.5 1004 380 454 223 80 3323

45

JOINT WAPDA USAID TASK FORCE ON THE PROJECTS

WAPDA USAID

Muhammad Imtiaz Tajwar, Secretary WAPDA – Team Leader

Mian Shahid Ahmad – Team Leader

Diamer Basha Dam Project

Dr. Izharul Haq, Chief Executive Officer (DBDP)

Dr. Raheel Siddiqui, General Manger (LA&R) Salim Paracha Ghulam Abbas

Kurram Tangi Dam Project

Mr. Irshad Ahmad, General Manger (P&D) Mr. Sher Nawaz, Project Director (Kurram Tangi)

Tariq Qazi Saleem Pracha

Mangla Power Station

Mr. Wajid Hameed, General Manager (Hydel) Sh. Altaf Hussain, Chief Engineer (Mangla)

Ghulam Abbas Saleem Paracha

Warsak Power Station

Mr. Wajid Hameed, General Manager (Hydel) Mr. Rizwan Ahmad, Chief Engineer (Hydel) Warsak

Tariq Qazi Saleem Paracha

Capacity Building

Mr. Muhammad Ali Shah, General Manger (C&M) Mr. Naveed ul Haq, Director (Training)

Tariq Qazi Munir Ahmad

46

EXISTING INSTALLED GENERATION CAPACITY WAPDA Hydro

6444 MW

(35%)

GENCOs

4829 MW

(27%)

IPPs (incl.

Nuclear)

6609 MW

(36%)

Rental

285 MW

(2%)

ELECTRICITY GENERATION BY FUEL

EXISTING INSTALLED GENERATION CAPACITY

Type of Generation Installed Capacity

(MW)

Derated/ Dependable

Capacity (MW)

Availability (MW)

Summer Winter

Hydro 6516 6516 Min 3260 Max 6750

720 5630

GENCOs 4829 3580 Max 3250 2960

IPPs (incl Nuclear/ Rental)

9637 9316 Max 5340

5230

Total 20982 19412 Min 11850

Max 15340

8910

13820

MAXIMUM ELECTRICITY SHORTAGES

SUMMER (May 2012) 5210 MW WINTER (10.1.2011) 4770 MW

Gas

29%Others

2%

Oil

35%

Hydro

35%

47

PEAK DEMAND PROJECTIONS* (WHOLE COUNTRY)

2009–2030

113695

80566

45698

2802922460

19352

106851

76200

41132

25444

1753916364

0

20000

40000

60000

80000

100000

120000

2009 2010 2015 2020 2025 2030

Years

MW

Demand Supply

*Projected demand includes captive power also. Average growth rate is expected to be about 8%