Planning Commission Submits Rs. 25.9 Billion PC-1 For Construction of Gomal Zam Dam

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The Planning Commission has submitted the 2nd revised PC-I of the Gomal Zam Multipurpose Project to the Executive Committee of the National Economic Council (ECNEC) at a total cost of Rs. 25.9 billion.

The project would include with FEC/USAID grant of Rs. 9.8 billion and cost-sharing of Rs. 2.57 billion by government of KP (GoKP) (Rs. 1.41 billion for FWOs cost of security & miscellaneous and Rs. 1.16 billion for land acquisition) with the following recommendations:

  1. To close the project, PC-IV will be submitted after approval from ECNEC:
  2. G/o Khyber Pakhtunkhwa will share the cost of security by FWO and Land Acquisition.
  3. The Badraggas required for the operation of the project should be a valid charge on the project duly approved by NEPRA in hydel tariff.
  4. The remaining Command Area will be developed as per PC-I, by the Agriculture Department, G/o Khyber Pakhtunkhwa.

Gomal Zam Dam was constructed on the Gomal River in South Waziristan, Khyber Pakhtunkhwa. It is roughly bounded by the Kaur Nullah in the North and the Gomal town in the South. The main objective of the project is to harness flood water to provide an assured irrigation water supply of 848 cusecs to irrigate 191,139 acres of land including 28,053 acres of additional land which falls under the command of the Waran Canal System and to generate 17.4 MW electricity.

Other objectives include flood mitigation and employment generation in the region by enhanced farm production.

Outcomes of the Project

  • Construction of a 437 ft. high dam with a reservoir having a gross storage capacity of 1.14 MAF.
  • Construction of a 60.5 km main canal of 848 cusecs discharge capacity and 369 km distributaries and minors.
  • Construction of 36.62 km Waran Canal System to provide irrigation in the command area of 28,053 acres.
  • Installation of a power plant with a generation capacity of 17.4 MW with an annual generation capacity of 90.9 GWh.

The original PC-I of the project was approved by ECNEC in the year 2001 for Rs. 12.82 billion. Design and construction contract was awarded to joint venture China National Water and Hydropower Corporation Harbin Power Engineering on an EPC contract basis on 17 June 2002 for US$ 72.9 million but due to the kidnapping of Chinese Engineers, the EPC contract terminated on 14 April 2006. The Economic Coordination Committee (ECC) approved the proposal of re-tendering on 1st March 2006. The contract was awarded to FWO for Rs. 10.4 billion with the commencement date of 11 June 2007 as an EPC contract without execution of transmission line with an expected date of completion as October 08, 2010.

Due to escalation, security requirements, and additional scope, WAPDA revised the project in 2012 for Rs. 22.48 billion with expected completion in June 2015, However, the project was approved by ECNEC at a rationalized cost of Rs. 20.62 billion on 6 March 2014 including Rs. 10.72 billion as USAID grant and Rs. 2.2 billion. as GoKP share for land acquisition and FWO security arrangements. Now WAPDA has submitted the 2nd revised PC-I of the project at a revised cost of Rs. 25.92 billion.

As per WAPDA’s latest report (August 2023), the project is physically 100 percent completed and the financial progress is 116.70 percent against 100 percent. Total expenditures incurred till August 2023 amounting to Rs. 24 billion against the approved cost of Rs. 20.6 billion.

The hydropower component has been operational since June 2013. Waran Canal System has been handed over to Irrigation Department GoKP on 5 November 2020. However, out of 197, 000 Acres of agricultural land, 60,000 Acres have been developed by GoKP through a separate project. The remaining 137,000 acres will be developed by June 2023. Ministry of Water Resources was requested vide OM dated 20-12-2022 and a subsequent reminder dated 03-01-2023 to provide up-to-date releases and expenditures.

The response received reveals that an amount of Rs. 18.6 billion has been released and an expenditure of Rs. 24.8 billion has been made. The expended amount includes Rs. 7.69 billion from PSDP, Rs. 1.4 billion from Provincial share, Rs. 9.54 billion from USAID, and Rs. 6.18 billion from WAPDA bridge financing. As per the 2nd Revised PC-I, the estimated cost is Rs. 25.92 billion therefore, the net requirement for the project is Rs. 7.25 billion.

Reasons for Revision

  1. Increased costs of consultancy services due to prolonged implementation.
  2. High bids were received for the Waran Canal.
  3. Variation Orders, EOTs Compensation, Financing Charges, and payments to be made at Escalated US$ rates.
  4. Increase in security cost due to prolonged implementation.
  5. Preparatory works/other Miscellaneous works
  6. Authority overheads are based on actual payment and for an extended period up to December 2020.
  7. The exchange rate was less.

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