WAPDA clarifies surge in Dasu hydropower project cost

ISLAMABAD: The Water and Power Development Authority (WAPDA) has issued a clarification on why the cost projections of the Dasu Hydropower Project have gone up.

On April 10, 2025, the Central Development Working Party (CDWP) reviewed the second revised PC 1 of the Dasu Project, which showed that the cost had gone up by Rs737 billion. The CDWP had recommended that the PC1 be considered by the Executive Committee of the National Economic Council (ECNEC).

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In response, WAPDA has issued a clarification on Dasu Project’s revised costs, saying that 85 per cent of the cost hike can be explained by the change in US Dollar-Pakistani Rupee parity. At the time of the project conception in 2014, the USD-PKR was at Rs100 to the dollar, but in 2025, that has increased to Rs280 to the Dollar, approximately.

The rest of the increase in project’s cost can be explained by the complex nature of the project, primarily in the ‘scope of work’.

WAPDA said that the reconstruction of Karakoram Highway and other contracts were awarded by international competition bid. These contracts have been awarded primarily in Pakistani rupee, and only a small portion of these contracts is payable in foreign currency.

A full-time team of WAPDA is responsible for monitoring and reviewing the Dasu Project, the head of which is project director with 25 years of experience in the relevant department.

WAPDA also said that their team consists of five chief engineers, 13 superintending engineers, 57 executive and assistant executive engineers as well as 15 other employees. Along with the WAPDA team, services of internationally renowned consultants have also been engaged for the project.

The team of consultants consists of 130 engineers, including at least 30 foreign experts. These experts belong to Japanese company Nippon Koei and Turkish company Dolsar. WAPDA said that the team of consultants is actively trying to accelerate the project monitoring and implementation.

The international panel of experts that has been appointed to review project design and construction activities, has extensive experience in geo-technical engineering, geology, dam design, electromagnetic, hydrology, sesmilology and RCC [Roller-compacted concrete (RCC) dam construction].

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“WAPDA is committed to add carbon-free, environment-friendly hydropower to the national system and reduce the dependence on expensive import fuel,” the statement issued by the authority said, adding that “WAPDA provides an average of 32 billion units of cheap hydropower every year to the national grid.”

WAPDA’s hydropower tariff is just Rs0.71 per unit, which, according to the statement, “is a key factor in keeping the country’s average electricity tariff low.”