Asian Development Bank refuses to fund Pakistan’s $14 bn Indus dam project in PoK

Previously, the World Bank declined to fund the project following Islamabad's refusal to seek an NoC from India.

By: PTI | Islamabad | Updated: October 27, 2016 3:22 pm

The ADB has refused to commit funds for Pakistan’s USD 14 billion dam project on Indus river in Pakitan-occupied Kashmir (PoK), two years after the World Bank declined to fund the project following Islamabad’s refusal to seek an NoC from India. “We did not really make any commitment. This is a very big project,” Asian Development Bank (ADB) president Takehiko Nakao said on Wednesday at a joint news conference with Finance Minister Ishaq Dar on the conclusion of the 15th ministerial meeting of the Central Asia Regional Economic Cooperation (CAREC) programme.

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Underlining that the project on Indus river in Gilgit-Baltistan in PoK was very important for Pakistan’s energy and irrigation requirements, Nakao called for the formation of more partnerships that could provide funding for the project, expected to generate a power output of 4,500 MW. “We haven’t decided [whether to fund] this project yet because it needs big money,” he said, adding that the ADB might consider joining the financing of this project at a later date, the Dawn reported.

He said presently the United States Agency for International Development (USAID) was conducting a feasibility study on the dam. Islamabad has consistently failed to attract foreign lenders for the project. Repeated efforts to rope in the World Bank as a co-lender had failed two years ago when the government declined to seek a No objection Certificate from India for the project.

Instead, Pakistan accepted a funding offer from the World Bank to start the Dasu Hydropower project, downstream of Diamer-Bhasha. The ADB also advised the government to adopt a professional approach towards the construction of the big dam that cannot be funded by a single institution, country or group given its mammoth financial requirements and the risks involved. As a way out, the ADB advised Islamabad to restructure the
Diamer-Bhasha dam project by separating power generation, land acquisition and main dam structures and their various modes of financing.

The ADB chief also cautioned Pakistan to wisely implement projects under the USD 46 billion China-Pakistan Economic Corridor (CPEC), another strategic project opposed by India as it passes through the PoK, and utilise their funds well so as to avoid debt or repayment problems.

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  1. S
    Satendra kumar
    Oct 27, 2016 at 3:19 pm
    Asian Development Bank should not finance any project as stan breaks all international laws.illegal claiming land boundaries.stan does terror outfits.
    Reply
    1. G
      Gopal Das
      Oct 27, 2016 at 6:07 pm
      Indians should not defecate in the open, rather they should defecate on 's head as storehouse of nightsoil.
      Reply
      1. G
        Gopal Das
        Oct 27, 2016 at 5:38 pm
        World Bank, ADB took right decision not to fund 14$ billion to debt ridden PAK. It's bankrupt economy cannot afford pay CPEC 51$ 14$ billions. Let their destiny be settled by Allah.
        Reply
        1. M
          mathimathi
          Oct 27, 2016 at 12:48 pm
          What about China to build 1,100 MW dam in POK on Jhelum river .
          Reply
          1. M
            mathimathi
            Oct 27, 2016 at 2:18 pm
            whatever it is dam is a dam. dam can be built in overtaking feku age with 1$ = Rs 66.85.!
            Reply
            1. M
              mathimathi
              Oct 27, 2016 at 1:09 pm
              yea. go to capture POK for an Nehru Period china bhai bhai to a feku period china bhai bhai.
              Reply
              1. M
                MSB
                Oct 27, 2016 at 10:07 am
                IF funds are provided to porkis, they will use it to finance terrorist activities in India
                Reply
                1. P
                  Prateik
                  Oct 27, 2016 at 3:49 pm
                  Update:China silent on proposal. Not commited
                  Reply
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