Wapda shares power evacuation plan for Diamer Basha Dam Project

ISLAMABAD: The Water and Power Development Authority (Wapda) has shared the power evacuation plan for the approximately USD10 billion of 4500MW Diamer Basha Dam Project (DBDP) with the Ministry of Water Resources, well-informed sources told Business Recorder.

According to sources, Wapda prepared and submitted the plan in response to a letter issued by the Prime Minister’s Office (PMO), following a series of high-level meetings presided over by Prime Minister Shehbaz Sharif to fast-track strategically important infrastructure projects.

Citing the PMO letter, sources said the National Grid Company of Pakistan Limited (NGC) and the Power Division have been directed to immediately finalise the power evacuation plan for DBDP, while the Power Division has also been tasked with engaging the Ministry of Finance and the Economic Affairs Division (EAD) to arrange financing for the associated transmission infrastructure.

In this context, Wapda has already conveyed the agreed commercial operation timelines of the project’s power generation units to the Independent System and Market Operator (ISMO). According to the schedule, the commissioning of the 12 generating units will take place in phases:

Unit-1 October 2032, Unit-2: December 2032, Unit-3: February 2033, Unit-4: April 2033, Unit-5: June 2033, Unit-6: August 2033, Unit-7: February 2034, Unit-8: April 2034, Unit-9: June 2034, Unit-10: August 2034, Unit-11: February 2035 and Unit -12: April 2035

Wapda has reaffirmed its full commitment to meeting these timelines, subject to the timely availability of requisite financial resources under approved financing arrangements.

However, sources stressed that while Wapda is progressing in line with the approved construction and commissioning schedule for the generation components, the realisation of the project’s full benefits is critically dependent on the parallel development of evacuation infrastructure.

The responsibility for planning, execution, and operational readiness of the transmission system associated with DBDP rests with the National Grid Company. Wapda has emphasised that evacuation works— including transmission lines and grid stations— must be planned and executed in strict alignment with the generation schedule.

Any misalignment between the readiness of generation units and availability of transmission infrastructure, Wapda cautioned, could result in avoidable delays in power evacuation, leading to underutilisation of installed capacity and significant financial implications for the national exchequer.

In view of these concerns, Wapda has requested the Ministry of Water Resources to take up the matter with the Ministry of Energy (Power Division) so that NGC is formally directed to accord high priority to the planning, financing, and execution of all transmission works linked to the Diamer Basha Hydropower Project in a coordinated and time-bound manner.

Sources recalled that on November 10, 2025, Prime Minister Shehbaz Sharif had directed relevant ministries and entities to devise a mechanism for expediting the implementation of strategic projects, with immediate focus on the Diamer Basha Dam Project.

The Prime Minister instructed the Ministry of Planning, Development and Special Initiatives (PD&SI), Economic Affairs Division, Ministry of Finance, and Ministry of Water Resources to ensure uninterrupted financial flows through Public Sector Development Programme (PSDP) grants, rupee cover, and other financing avenues to enable the timely completion of major Wapda projects, including Diamer Basha, Mohmand Dam, and the Dasu Hydropower Project.

Sources said that despite the project’s strategic importance for water and energy security, development partners have so far shown reluctance to commit the required USD10 billion financing— USD8 billion for the dam and power components and an additional USD2 billion for transmission infrastructure. Once completed, the project is expected to add 6.4 million acre-feet of water storage capacity and generate 18.1 billion units of electricity annually.

On financing arrangements, the Prime Minister directed that to meet funding requirements over the next five years, the Ministry of PD&SI should ensure adequate allocation and timely release of funds through the PSDP. In addition, commercial financing of USD500 million per annum over the next seven years will be arranged to bridge the financing gap for Diamer Basha, with immediate implementation of this decision.

It was also decided that the processing of the revised PC-I of DBDP—covering the dam, as well as, land acquisition and resettlement—will be fast-tracked and completed by December 31, 2025. Land acquisition for the project began in 2010, with approximately 9,270 kanals acquired by 2016, while mutation of the acquired land is to be completed at the earliest.

The district administration was directed to demolish illegal constructions within the project’s reservoir area on a priority basis by December 31, 2025. Meanwhile, the NGC and Power Division have again been instructed to immediately finalise the evacuation plan, with the Power Division coordinating with the Ministry of Finance and EAD to arrange financing.

To meet commercial financing needs, preference will be given to concessional long-term funding from multilateral and bilateral sources, international capital markets, and sovereign wealth funds, with the Ministry of Finance and EAD steering the process.

The Prime Minister further directed that financial closure of all future projects must be completed before commencement to avoid cost escalations and delays.