World Bank: World Bank seeks alteration in staff security mode of DHP

ISLAMABAD: The World Bank (WB) has sought alteration in security mode of staff working on billions of dollars Dasu Hydropower Project (DHP) as permission/ approval challenges are now severely constraining project progress.In a letter to Secretary Ministry of Water Resources, WB Country Director, Najy Benhassine has shared the findings of Implementation Mission which visited February 10-28, 2025 and subsequent discussions on the project.He said the WB's Board of Executive Directors approved $1 billion as the Second Additional Financing for DHP-I on June 10, 2024. These are: IDA credit 7563-PK $435 million as Shorter Maturity Loan (SML) without interest, IDA credit 7564-PK $365 from the Scale Up Window, and IBRD Loan 9680-PK of $200 million.Pakistan, World Bank agree to expedite implementation of Dasu Hydropower ProjectAccording to the Country Director, after all internal approval requirements are complete, WB would request the Economic Affairs Division (EAD) to propose a date as soon as feasible to complete the signing of the IDA credit and IBRD loan agreements. This signing is critical as it will enable: (i) the project's financing costs to be optimized by using the concessional SML in IDA 7563-PK; and (ii) the existing IDA Credit 5497-PK and IBRD Loan 9076-PK that will close on May 31, 2025 and June 30, 2025, respectively to be extended to December 31, 2028.Without extension of the closing dates, the undisbursed amounts will be cancelled. Currently, IDA Credit 5497-PK has an undisbursed balance of $101 million and IBRD Loan 9076-PK has an undisbursed balance of $545 million.Commenting on extraordinary security measures that needed to be taken because of the serious security incidents, WB argued that these are now constraining project progress.The Project now has over 1,700 security personnel from different security corps. A Security Task Force leads these. Extremely strict protocol for security had to be put in place, but improving the system organising the movements of Project staff is necessary to reduce the current impediments that are slowing down project progress and increasing costs as resources remain idle due to delays, including construction resources and supervision personnel and plants.WB has requested the Government and WAPDA to implement an effective system to manage staff travel.A combination of security-related logistics and permitting/approval challenges severely affect the movement of international staff. They are not permitted to use road transportation for travel to and from Dasu; and travel by helicopters is not predictable as it is contingent on weather conditions and availability of helicopters. Consequently, the staff is stranded in Islamabad and Dasu for several days affecting their morale and ability to contribute to DHP.Within Dasu, approval for the movements of Chinese contractor and DHC supervision staff is restrictive, which affects construction progress and quality of supervision. Chinese staff's travel to other areas in the country such as Hattian (near Tarbela) where cable crane parts are stored is also affected.Hurdles in construction works by local communities: WB has requested the Government and WAPDA to make further efforts to ensure safety of the Project workers and construction sites and reduce stoppage of work. Since 2017, protests by local communities have severely obstructed construction of the 132 kilovolt (kV) transmission line from Dubair to Dasu. Without this line, construction of the dam cannot start.Backlog of houses that have been paid resettlement compensation but are yet to be demolished is increasing. The WB has request the Federal and Khyber Pakhtunkhwa governments to monitor the effort by the Deputy Commissioner (DC), Upper Kohistan, for demolishing the houses. Houses corresponding to over 640 paid Enhanced Self-Managed Relocation (ESMR) cases have not been demolished yet. There has been no progress in the last six months, which has severely impeded the construction of Karakorum Highway Section 2 (KKH2) and Right Bank Access Road Section 2 (RAR2). District Police Office has agreed to accompany the workers demolishing the houses to ensure their safety.WAPDA and DHC are discussing amendment of the consultancy contract of the Supervision Engineer, which currently has the end date of June 30, 2025. The Supervision Engineer must support the Project until the DHP is commissioned and during the defect liability period of the key contracts. WAPDA has been requested to submit the proposed amendment for Bank's review and clearance by April 10, 2025.The WB has further stated, although left and right bank abutment excavation is nearly complete, CGGC has delayed the preparatory works (crushing and batching plants, cable crane, etc.) that are needed for concreting the integrated coffer dam. Critically, the 132 kV transmission line for supplying dam construction power remains incomplete."We are very concerned that for over six months, there has been no progress on 15 towers of this line. The local people of Jalkot, Shal, and Tiyal in Upper Kohistan, Pattan, and Kolai Pallas obstructed the workers from installing the line.We request concerted efforts from Federal and KP governments, DCs, as well as District Police Offices to protect the workers and ensure their safety," the Country Director said, adding the Bank has requested WAPDA to ensure that the contractor delivers all tower parts to site and mobilizes workers at all tower locations, where work is possible.The key actions for DHP on the ongoing contracts are: (i) In MW 01, CGGC must complete the Sigloo Crushing Plant and partially operate it with Sigloo Powerhouse by May 2025. CGGC must complete cable crane by June 2025 and conveyor belt from batching plant to dam pit by September 2025; (ii) in MW 02, CGGC must increase resource mobilization at intake, gas insulated line tunnel and vent shaft. Excavation of intake in on the critical path and CGGC must complete it by November/ December, 2025; and (iii) Power China and WAPDA to complete 132 kV line by May 2025.Copyright Business Recorder, 2025