WAPDA explains reasons behind Rs1,737bn revised cost of Dasu Hydro Project

WAPDA has issued a clarification regarding the increase in the construction cost of the Dasu Hydropower Project, stating that on April 10, 2025, the Central Development Working Party (CDWP) reviewed the second revised PC-1 of the project. 

The revised cost has been estimated at Rs 1,737 billion, and the CDWP has recommended it for consideration by ECNEC, reported 24NewsHD TV channel reported on Sunday.

According to WAPDA, approximately 85% of the cost increase is due to the sharp depreciation of the Pakistani rupee against the US dollar. In 2014, the dollar stood at Rs100, while in 2025 it has risen to Rs280.

The remaining 15% of the increase stems from the complexity of the project and an expanded scope of work, including the reconstruction of the Karakoram Highway. All major contracts were awarded through international competitive bidding, primarily in Pakistani rupees, with only a small portion payable in foreign currency.

WAPDA emphasised that a dedicated, full-time team, led by an experienced project director with 25 years of relevant experience, is overseeing the project. The team includes 5 chief engineers, 13 superintending engineers, 57 executive and assistant executive engineers, and 15 other staff.

In addition, services of internationally reputed consultants have been hired, comprising 130 engineers, including 30 foreign experts from Japanese firm Nippon Koei and Turkish company Dolsar.

An international panel of experts has also been appointed to review design and construction activities. These experts specialise in geotechnical engineering, geology, dam design, electromechanics, hydrology, seismology, and RCC (roller-compacted concrete).

WAPDA reiterated its commitment to adding clean, carbon-free hydropower to the national grid and reducing reliance on expensive imported fuels. The authority currently supplies an average of 32 billion units of low-cost hydropower annually, with a tariff of just Rs 3.71 per unit, playing a major role in keeping the national electricity tariff affordable.

Reporter: Awais Kiyani