ADB links Basha Dam funding to NA consent

Saturday, 06 June 2009 10:52

ISLAMABAD: The Asian Development Bank (ADB) has linked Aid Memoir for $11.8 billion Diamer-Bhasha dam with a consensus resolution by the National Assembly in favour of the dam to have across the board ownership in the country.

“A fact-finding mission of ADB has conveyed this to Pakistan in plain words here in a meeting held in the Economic Affairs Division (EAD),” a senior official who attended the meeting told The News. WAPDA Chairman Shakil Durrani was also part of the meeting.

The government has already come up with a commitment to initiate formal work for construction of the dam portion of the mega project and allocated over Rs23 billion for next fiscal year.

Pakistan is expecting $5 billion from the ADB, but the Bank, which earlier indicated to lend loan amounting to $2.5 billion for the dam is likely to increase the credit in the range of $3 to $4 billion in the Aid Memoir.

The official said that Pakistan in the meeting asked the bank to come up with $5 billion loan for the mega project against its offer of $2.5 billion. “The bank responded to Pakistan’s request saying, lets wait for the Aid Memoir.”

EAD Secretary Furrukh Qayyum when contacted said that the fact finding mission actually came up with advisory report containing the guidelines and benchmarks as per the international best practices for loan generation prior to initiating the formal work on mega project such as a Diamer-Basha dam.

Once the project becomes marketable after bringing project document in line with advice of the fact mission of the Bank, it would be very easy to generate funding for the project. “So far the bank has shown ownership for the project in all shapes, but wants the advisory report to get implemented first.”

When asked if ADB has indicated to come up with Aid Memoir in next 15 days, he said it is too premature, as Pakistan will first have to implement the advice, which the mission has given to the WAPDA chairman and then the stage will come for Aid Memoir. However, he admitted that the Bank has asked for the unanimous resolution in favour of Diamer-Bhasha dam to avoid any dispute.


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