September 29, 2003	Monday	Sha’aban 2, 1424

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ISLAMABAD, Sept 28: Pakistan will be facing a financing gap of around Rs336 billion ($5.6 billion) in the construction of 10 mega irrigation and water storage projects costing about Rs454 billion ($7.6 billion).

A senior official of the Planning Commission told Dawn on Sunday that the total cost of these major water sector projects was estimated at Rs454 billion against the total projected availability of Rs118 billion funds till year 2011.

These projects, said the official, which included Mangla dam raising, Bhasha dam, Sabakzai dam, Kachhi Canal, Gomal Zam dam, RBOD Phase-III and other smaller ones were also presented to the Executive Committee of the National Economic Council (Ecnec) on Saturday.

Ecnec was also informed that under a December 2000 decision of the Central Development Working Party (CDWP), no water sector project could be put before the CDWP or Ecnec for decision unless all the provinces consented to it at the pre-CDWP forum so that these could not be politicised.

According to the information provided to the Ecnec, the construction of Bhasha dam would cost around Rs208 billion ($3.4 billion). Its feasibility study would be final in all respects by June 2005, and construction work could begin in 2006.

The project, estimated to be completed by 2013, would have a water storage capacity of 7.1maf (million acre feet) and a large portion of more than 10km of the Karakoram Highway (KKH) would be submerged with the dam, for which an alternate would have to be constructed.

The sources said existing KKH would also have to be widened to mobilise heavy machinery to the dam site. The Bhasha dam site also fell in the volcanic area, the government was informed.

The Planning Commission official said the meeting was informed that water sector projects already taken in hand had a total cost of Rs150 billion while the availability of resources had been shown at Rs118 billion.

The total cost would increase to Rs454 billion with the inclusion of new projects like Mangla dam, Bhasha dam and Sabakzai dam, but availability of resources would remain at Rs118 billion leaving a shortfall of Rs336 billion.

The official said Wapda was asked as to how it expected to bridge the financing gap of Rs336 billion. Wapda informed that donors and international lenders were expected to come forward and some funding could also be arranged locally once the projects were formally launched.