Mohmand, Dasu Dam Project Costs Surge by Rs1.6 Trillion

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ISLAMABAD: The estimated construction costs of Pakistan’s two major hydropower projects — the Mohmand Dam and Dasu Hydropower Project — have risen by a combined Rs1.607 trillion, increasing the total projected cost from nearly Rs800 billion to around Rs2.4 trillion.

According to documents submitted by the Ministry of Water Resources to the National Assembly, the cost of the Mohmand Dam Hydropower Project has increased from Rs309.558 billion to Rs665.743 billion, marking an escalation of Rs356.18 billion.

The ministry stated that the original cost estimate had been approved under the project’s PC-I at the time the contract was awarded. However, a revised PC-I incorporating the updated cost estimate is currently awaiting approval from the Ministry of Planning.

Meanwhile, the cost of the Dasu Hydropower Project has witnessed an even sharper increase. The project’s estimated cost has surged from Rs486.093 billion, approved under the 2014 PC-I, to Rs1.737 trillion — an increase of Rs1.251 trillion.

According to the ministry, the second revised PC-I for the Dasu project received approval from the National Economic Council (NEC) in December 2025.

The documents further revealed substantial increases in allocations for the welfare and development of communities affected by the projects.

For the Mohmand Dam project, the allocation for local community uplift has been increased from Rs160 million to Rs4.5 billion under the revised PC-I.

Similarly, the allocation for community development under the Dasu project has been raised from Rs7 billion to Rs57 billion, reflecting the government’s expanded focus on compensating and supporting affected populations.

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