ISLAMABAD: The Water and Power Development Authority (Wapda) has hit back at the Central Development Working Party (CDWP), justifying an ‘astronomical increase’ in the cost of the Dasu Hydropower Project from Rs480bn to Rs1.74tr with 10-year delay.

In its documents submitted to the CDWP, Wapda has also disclosed the transportation of Chinese engineers and workers engaged in the multi-billion-dollar project through helicopters due to security reasons following two deadly attacks on contractors’ convoys over the past years.

“Without valid justifications beyond Wapda’s control, the CDWP would not have referred the project to the Executive Committee of the National Economic Council (Ecnec)”, a Wapda official said, adding an inquiry report on the project delays and cost escalations was on record of the CDWP meeting that recommended it for consideration by Ecnec.

Claims rupee depreciation contributes 85pc to surge in 10 years

He said the Wapda team had placed all material and verbal justifications on record, but the Planning Commission chose to release selective material in its statement during CDWP proceedings.

In a statement, Wapda conceded that the project cost “substantially escalated to Rs1.737tr from Rs487bn”. Approximately 85pc of this increase was attributed to the rupee depreciation against the US dollar—from Rs100 in 2014 to Rs280 in 2025. The remaining was due to an increased scope of work arising from the complex nature of the project.

Responding to the Planning Commission’s observations, Wapda said contracts, including the Karakoram Highway (KKH) relocation, were awarded under International Competitive Bidding and were primarily denominated in local currency, with only a tiny portion payable in foreign exchange.

Planning Commission said the project did not have a project director. Wapda replied that a dedicated team, led by a full-time project director with 25 years of experience in the relevant field, oversees the project. The team includes five chief engineers, 13 superintending engineers, 57 executive and assistant executive engineers, and over 15 other officials supervising construction activities.

Additionally, top-tier international consultants with 130 engineers, including 25 to 30 expatriates, are engaged in the project. These include Japanese experts from Nippon Koei and specialists from Dolsar, Turkiye, who supervise and optimise project implementation.

An International Panel of Experts, comprising specialists in geotechnical engineering, geology, dam design, electro-mechanical, hydrology, seismology and roller-compacted concrete, had also been engaged to review the project’s design and construction.

“The Ministry of Water Resources and Wapda, as the sponsoring and executing agencies respectively, justified the increases in cost and time overruns while addressing queries posed during the CDWP meeting”.

The project was originally scheduled to commence in June 2014, with completion expected in December 2019. However, due to land acquisition issues, the project was initiated in January 2020, following a revision of land acquisition rates approved by Ecnec in October 2019.

Published in Dawn, April 15th, 2025