Saudi Arabia to fund water projects in Pakistn      
'Pakistan Times' Federal Bureau   
       
ISLAMABAD: Saudi Arabia has asked Pakistan to formally submit its reference seeking funds for mega water projects of Bhasha, Kalabagh and Akori dams so that the Board of Directors of the Saudi Fund and the Islamic Development Bank (IDB) could take up the reference for finalising the volume of funding. 

A Pakistan team headed by Secretary EAD Khalid Saeed visited Saudi Arabia from February 12 to 17 and held preliminary talks about seeking maximum financing for the projects of paramount importance that will play a pivotal role not only for enhancing water storage capacity of the country, but also for increasing the capacity to generate power. 

The Saudi Fund and the IDB showed keen interest and promised to participate in the construction of the mega water projects. Riaz A Khan, Adviser to the Ministry of Water and Power, made presentations before the officials of the Saudi Fund and the IDB on the said projects during the visit. 

"The main reservoirs for which Pakistan wants finances include the Kalabagh dam that is to cost $6 billion, Bhasha $6.5 billion, and Akori $3.8 billion." 

Kalabagh and Bhasha Dams 

The country will have a total benefit of Rs 164 billion per annum from the Kalabagh dam and Rs 369 from both Kalabagh and Bhasha dams. If the country manages to store 20 MAF water annually then it will have benefit of Rs 566 billion and in case of storage of 25 MAF, then the country will have Rs 707 billion benefit. 

Keeping in view the requirement of the Saudi Fund and the Islamic 
Development Bank, the Ministry of Water and Power will prepare a reference along with the economic analysis of all the said mega projects and send a summary to prime minister for approval. 

After getting the nod the Economic Affairs Division will send the reference along with feasibility reports, detailed engineering and economic analysis of the projects to Saudi Arabia for maximum funding. 

Pakistan had taken up the issue of financing for the mega dams of Bhasha, Kalabagh, and Akori during the recent visit of Saudi Arabia’s King Abdullah. 

Perspective 

During that visit to Pakistan, King Abdullah had assured President Pervez Musharraf of maximum help in this regard and asked government of Pakistan to send its delegation to negotiate with the Saudi Fund and the Islamic Development bank to this effect. 

Following the said understanding, Pakistan’s delegation visited Saudi Arabia where the delegation held preliminary talks with the authorities of the Saudi Fund in Riyadh and with officials of the IDB in Jeddah. 

President Musharraf in his previous address to the nation had announced to initiate the five dams, but the Bhasha dam is the first to be initiated. 

The president in his address had said that the Kalabagh dam will also be built but after evolving a consensus and for this the campaign will continue and government will alleviate the concerns of the NWFP and Sindh till the consensus is achieved. 

The President in his address announced that he will perform the 
ground-breaking ceremony of the Bhasha dam in the first week of February, marking the initiation of the work on construction of colonies, laboratories and roads including 120 kilometres of the Karakoram highway that is to be submerged in the wake of construction of the dam. However,he has not performed the ceremony so far . 

The proper work on the foundation of the Bhasha dam will start once the geological survey and detailed engineering of the dam is completed.•