Islamabad: The Water and Power Development Authority (Wapda) has shared a comprehensive power evacuation plan for the 4,500MW Diamer Basha Dam Project (DBDP)—a strategically vital project valued at around USD 10 billion—with the Ministry of Water Resources, well-informed sources told Business Recorder.
According to sources, the plan was prepared and submitted in response to a directive from the Prime Minister’s Office (PMO), following a series of high-level meetings chaired by Prime Minister Shehbaz Sharif to fast-track key national infrastructure projects.
Citing the PMO’s instructions, sources said the National Grid Company of Pakistan Limited (NGC) and the Power Division have been directed to immediately finalise the evacuation plan for the Diamer Basha project. 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 line with these directives, Wapda has already conveyed the commercial operation timelines of the project’s generating units to the Independent System and Market Operator (ISMO). Under the phased schedule, commissioning of the 12 power generation units will begin in October 2032 and conclude by April 2035.
- 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
- Unit-12: April 2035
Wapda has reaffirmed its commitment to meeting these timelines, subject to the timely availability of financial resources under approved financing arrangements.
However, sources emphasised that while construction and commissioning of the generation components are progressing as scheduled, the full benefits of the project depend critically on the parallel development of transmission and evacuation infrastructure. Responsibility for planning, execution and operational readiness of the transmission system rests with the National Grid Company.
Wapda has cautioned that any mismatch between the readiness of power generation units and the completion of evacuation infrastructure—such as transmission lines and grid stations—could lead to delays in power evacuation, underutilisation of installed capacity and significant financial losses for the national exchequer.
In this regard, Wapda has urged the Ministry of Water Resources to take up the matter with the Ministry of Energy (Power Division) to formally direct NGC 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 instructed relevant ministries and entities to develop a mechanism for expediting strategic projects, with immediate focus on Diamer Basha, Mohmand Dam, and the Dasu Hydropower Project. He directed the Ministry of Planning, Development and Special Initiatives (PD&SI), Ministry of Finance, EAD and Ministry of Water Resources to ensure uninterrupted financial flows through PSDP allocations, rupee cover and other financing avenues.
Despite the project’s importance for Pakistan’s water and energy security, development partners have so far been reluctant to commit the full financing requirement—USD 8 billion for dam and power components and an additional USD 2 billion for transmission infrastructure. Once completed, Diamer Basha is expected to add 6.4 million acre-feet of water storage capacity and generate 18.1 billion units of electricity annually.
To bridge the financing gap, the Prime Minister directed that adequate PSDP allocations be ensured over the next five years, along with commercial financing of USD 500 million per year for seven years, with immediate implementation of this decision. He also ordered fast-tracking of the revised PC-I of the project, covering the dam as well as land acquisition and resettlement, to be completed by December 31, 2025.
The district administration has been instructed to demolish illegal constructions within the project’s reservoir area on a priority basis, while land mutation for already acquired land is to be completed at the earliest.
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 leading 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.
Story by Mushtaq Ghumman
