Wapda estimates Mohmand Dam at 666 billion rupees — The Express Tribune

In Pakistan, the Water and Power Development Authority (Wapda) has estimated the cost of constructing the Mohmand Dam at 666 billion Pakistani rupees. This is 356 billion rupees, or 115%, higher than the estimate approved in 2018, The Express Tribune reports.

The revised estimate was submitted this week for consideration by Pakistan’s Central Development Working Party (CDWP). However, the body did not make a decision due to a lack of time. After review by the CDWP, major projects are sent to the Executive Committee of the National Economic Council for final approval.

Impact of the dollar exchange rate

Wapda said that 51% of the total cost increase is linked to changes in the dollar exchange rate. The project has components in both local and foreign currencies, so exchange-rate fluctuations significantly increased the rupee equivalent of foreign currency expenses.

The Planning Commission asked Wapda to provide details of contract payments denominated in dollars and explain to what extent exchange-rate changes can be included in the project cost. The commission stressed that the foreign currency portion of contracts cannot automatically be recalculated at the current exchange rate without analyzing the terms of the agreements and actual payment obligations.

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Delays and completed work

In 2018, the project was approved with a budget of 310 billion rupees and a plan to complete work in September 2025. According to the project management, the timeline and estimate were affected by changes in the dollar exchange rate, adjustments to design solutions, the 2022 floods, and security problems.

Construction is being carried out by a joint venture of China’s China Gezhouba Group Company Limited and Pakistan’s Descon Engineering Limited. As of last month, physical completion stood at about 57%, while project spending had reached 275 billion rupees.

Of the proposed increase in the estimate, the cost of the dam itself is expected to rise to 267 billion rupees, up 134% from the previous estimate. Spending on electricity generation is proposed to increase to 399 billion rupees, which is 105% higher than the initial figure.

After completion, the project is expected to increase Pakistan’s water storage capacity by 1.29 million acres, add 2.9 billion units of generated electricity to the national power grid, and supply Peshawar with 300 million gallons of drinking water annually.