Sindh, NWFP oppose land plan for Kalabagh, Akhori dams
By Khaleeq Kiani
ISLAMABAD, Jan 14: Sindh and the NWFP have opposed the finalisation of land acquisition and resettlement plans for Kalabagh and Akhori dams till people are convinced by Wapda of their benefits on the basis of facts and figures.
On two other dams -- Diamer-Bhasha and Munda -- the centre and the provinces have finalised with consensus the land acquisition and resettlement plans, a senior government official told Dawn on Sunday.He said the government had convened a meeting of the inter-provincial committee on dams on January 20 to discuss written views submitted by the provinces about an action plan for the construction of five big dams. The committee will also discuss the land acquisition and settlement plans of the dams.
The committee will also examine as to when Wapda will submit its response and action plan on the basis of provincial comments on various aspects of the construction of various dams. The official said that like Sindh the NWFP had also opposed the construction of Kalabagh and Akhori dams.
A Sindh government official said the province had informed the centre that under a decision of the federal government, Wapda was required to convince the people to be affected or displaced by the proposed construction of dams through facts and figures under a well-planned information campaign before the resettlement and land acquisition plans were prepared. "That campaign is yet to start," said the official, adding that Sindh would insist for the implementation of the cabinet decision first.
Sindh has already informed the committee about its objections to the construction of Kalabagh and Akhori dams on the grounds that surplus water would be available only for 11 years out of 27 years and that too would be enough for meeting the existing provincial shares under the water accord, and not for new dams.
The committee was constituted by the CDWP in October to finalise an action plan for the construction of three big dams -- Kalabagh, Akhori and Diamer-Bhasha -- by the year 2016. Sindh is also opposed to water withdrawals through Chashma-Jhelum and Taunsa-Punjnad link canals in times of shortages, which should be used in flood season.
A special taskforce on dams led by adviser to the prime minister on finance Dr Salman Shah is simultaneously preparing a $17 billion 15-year business plan for the construction of Kalabagh, Akhori and Diamer-Bhasha dams and is discussing it with four major lenders, including the World Bank, Asian Development Bank, Saudi Fund for Development and Islamic Development Bank.
Special cells are being created in three federal divisions -- finance, economic affairs and water and power -- for interaction with the foreign lenders. Special purpose vehicles (SPVs) will be created to finance and construct the Diamer-Bhasha dam on the lines of international practice investment and tax purposes.
Some of the lenders have, however, informed the government that a broad-based resettlement policy, risk mitigation measures and a long-term business plan along with a repayment mechanism are required to meet their standards, policy concerns and board approvals.
The cell at the water and power ministry was directed to prepare a national resettlement policy, land acquisition and resettlement mechanism specifically for the three dams, environmental aspects, tender documents, bidding process and prequalification criteria, besides financial needs on an annual basis. It would be assisted by Wapda, Nespak, Chief Engineering Organisation, Indus River System Authority, etc.
The cell at the finance and economic affairs ministry will prepare, with input from the water and power ministry, the overall financing requirement for each project on an annual basis, examine terms and conditions of the foreign financing and put in place the repayment schedule and hold talks with creditors.
According to the water and power ministry, the total cost of three dams was expected to be about Rs1.027 trillion ($17.1 billion), including a foreign exchange component of Rs433 billion ($7.22 billion). Costs of Diamer-Bhasha, Kalabagh and Akhori dams were estimated at $6.51 billion, $6.2 billion and $4.44 billion, respectively.
The government plans to seek foreign financing of $2.964 billion for the Diamer-Bhasha dam, $2.84 billion for Kalabagh and $1.42 billion for the Akhori dam. These three dams are part of the five big dams’ project President Pervez Musharraf announced in January. The other two dams -- Munda and Kurram Tangi -- are in the process of being given to the private sector for construction. The construction of none of the five projects has taken off as yet.
