ISLAMABAD, Oct 12: The Water and Power Development Authority has asked the centre to direct Sindh not to demand payment for the government land required for the Rainee canal project.

Sources told Dawn on Tuesday that Wapda wanted the centre to direct the provincial government to expedite payment of compensation so that the project could be completed by December 2008.

Wapda officials fear that if the two issues were not sorted out within the year, the project would be delayed. The project located in Ghotki, Sukkur and Khairpur districts will provide seasonal irrigation supplies of 5,155 cusecs to 412,400 acres of Nara region for agriculture and lakes.

It includes construction of the canal with 164km of branches and distributaries and 508km of minor and allied structures. Sources said Wapda had informed the president's secretariat that earth work of the canal had been completed.

So far, Rs300 million have been spent on the project that was started in October 2002 and Rs1 billion had been allocated for it the 2004-05 Public Sector Development Programme, they said.

Wapda provided to the secretariat details of work completed by July on some drainage programmes, surface water schemes and hydro development projects. The secretariat has been informed that the Central China Power Group, the Sinohydro-ACL joint venture, the China International Water and Electric Group, the Oden Enterprises and the Excellence Technology Group had shown interest in the implementation of the Rs84.5 billion Neelum Jhelum hydroelectric project.

The firms were asked to provide financial and technical proposals. The feasibility study, engineering design and technical tender documents have been completed and the PC-1 of the project approved by the Executive Committee of the National Economic Council.

Work on the project, located in Muzaffarabad, was commenced in July 2003 and it will be completed by June 2011. The project involves construction of a 140km long and 47 metres high concrete gravity dam on the Neelum River to generate 963MW.

Sources said, quoting Wapda, that Abu Dhabhi and Saudi Arabia had agreed to provide major funding for the Rs12.8 billion Gomal Zam dam project, which was inaugurated on Aug 22, 2002, and would be completed by June 30, 2006. The objective of the project is to irrigate 163,086 acres in Dera Ismail Khan and generate 17.4MW.