ADB not abandoning Pakistan's Diamer-Bhasha Dam project

The ADB clarified that it has remained committed with the $12 billion Diamer-Bhasha Dam project.

“We have not changed our position. We have not walked away from the project,” said Dr Werner E. Liepach, country director of ADB.

He said the bank remained committed to the project and continued to have dialogue with stakeholders in a positive professional manner.

But he emphasized that ADB is not yet ready yet to complete its financing because it’s a very complex project and required a lot of money that it alone could not afford to extend.

Dr Liepach said it was clear to all stakeholders, including Pakistan, that no institution would alone fund the project worth $12-13 billion. Such a large financing envelop has to be pooled together by a number of multilateral and bilateral financing agencies to share risks and returns.

Dr Liepach said the bank had been advising the government to bring other parties on board for financing “but we have not seen that happening”. He said the project may need securitisation of Wapda assets which was a complex issue, required lengthy valuation process and financing.

He noted that the ADB had not moved as fast as the government of Pakistan may have desired, but the government and the Wapda have not been completed requirements.

“What we want to see before taking the project for approval before the ADB board of directors is that entire financing plan for the project is complete, it complies with safeguard policy guidelines, including those relating to environment, resettlement and procurement, and meets transparency standards,” the ADB chief in Pakistan explained.

However, ADB warned Pakistan against awarding the contract to China without international competitive bidding.

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