PESHAWAR, March 6: As the stand-off between the federal government and the World Bank continues over the construction of Hingol Dam in Balochistan, the donor agency has decided to back out of the agreement until Islamabad drops its plan of constructing a reservoir on the Hingol River.
Official sources in the NWFP Department of Wildlife told Dawn on Tuesday that the dispute had jeopardized the future of the multi-million-dollar project and that the WB had asked the federal government to abide by its commitments and sign the final agreement by March 15, otherwise the $10 million grant for the Protected Areas Management Project would be withdrawn.
The government has planned to execute biodiversity conservation projects with the financial assistance of the WB in Hingol National Park (Balochistan), Machiara National Park (Azad Jammu and Kashmir) and Chitral Gol National Park (the NWFP).
The executive committee of the National Economic Council approved Rs648.550 million for the project for which the WB agreed to release $10 million under Global Environment Facility.
The sources said that as the precondition of the WB, the provincial governments and the government of the AJK had given commitments that any activity which affected biodiversity of the three selected sites including, construction of Hingol Dam, would not be carried out.
An official concerned said the final agreement had been ready to be signed in May 2001 and that the WB board of directors had approved the projects. The implementing agencies in conformity with the prerequisites of the project had already completed necessary arrangements, including selection of project staff and mobilization of community, to launch the projects.
The sources said the Economic Affairs Division had taken a decision to construct water reservoir on Hingol Dam, causing a delay in signing the agreement.
The Balochistan government has said it has no plan to construct a dam on the Hingol River and the same site did not appear anywhere in tge next 10-year plan of development of water reservoirs by the Water and Power Development Authority.
The official sources said that if the government dropped the plan of dam construction at the Hingol National Park, the WB would process the documentation of the project for the approval of the its board of directors.