Dasu Hydropower Project will stabilize the economy of Pakistan

China links resumption of work on Dasu Dam to compensation

The civil works on the Dasu Hydropower Project have come to a halt since the deadly attack on a team of engineers working on the project which resulted in the casualty of thirteen people, including nine Chinese engineers, two locals and two personnel of the Frontier Constabulary (FC) while injuring several others.

According to sources China has sought compensation from Pakistan to the tune of $38 million (Rs 6.5 billion) for the dead and injured Chinese engineers working on Dasu Hydropower Project.

The Chinese firm, China Gezhouba Group Corp, which suspended work on the Dasu project after the bus incident, had announced negation of its decision to resume work and terminate Pakistani workers, on the request of the Pakistani government. However, the company has not yet resumed work and is saying that it will not proceed ahead until compensation package and more security of Chinese nationals is provided.

The Pakistani authorities maintain that the Indian Spy Agency, RAW, was directly involved in the attack on the Chinese team working on construction of tunnel site of 4,300MW Dasu project.

The National Electric Power Regulatory Authority (Nepra) allows for one per cent of capital cost as security to be built in the consumers’ end tariff.