Swiss arbitrator's report on Baglihar by Feb 12 : Jora

By Staff
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Jammu, Feb 8 (UNI) The Swiss arbitrator will present his final report on the 450 MW Baglihar Hydroelectric Power Project (BHEP), the bone of contention between India and Pakistan, in three days, Jammu and Kashmir Power Minister Nawang Rigzin Jora disclosed in the Legislative Council today.

Replying to discussions on the dam, the Power Minister said after failing to resolve differences over the project, Pakistan referred the matter to the World Bank and its neutral expert furnished the draft determination and would thereby deliver the final determination on February 12.

The Power Minister informed the upper house that the new date for completion of the Baglihar hydel power project was slated for December 31 this year.

He said the project had been contracted out in anticipation of the financial closure to two contractors, Jayprakash Industries Limited and Siemens, for Civil and Electro Mechanical works respectively in the year 1999. The project was scheduled to be completed in 60 months by December 31, 2004 from the date of commencement, he added.

The Minister was replying to discussions on the losses incurred on the project in its completion and the objections raised by Pakistan in the construction and functioning of the Power Development Department in the Legislative Council today.

He said the project had been appraised by the IDBI led consortium at a cost of Rs 3810 crore, but the financial closure could not be achieved upto the year 2003.

''Owing to non achievement of the financial closure, delay in land acquisition, difficult geological strata and labour problems, the project could not be completed by the initially scheduled date of December 31, 2004'' Mr Jora said.

Meanwhile, the expenditure on the project in anticipation of the financial closure was met from Bonds of Rs 1054 crore raised from financial markets and annual plan outlays of the state, he added.

He said the PFC led consortium was approached in the year 2003 for the financial closure of the project and the PFC appraised the project at a revised cost of Rs 4000 crore. The financial closure was achieved in the year 2004 and the revised date for the project's completion was fixed for June 30, 2006 he added.

The Minister said the loan amount of Rs 1131 crore had been lifted and an expenditure of Rs 3274 crore, excluding financing costs of Bonds of Rs 508 crore, have been spent on the project.

He said while the work was going on smoothly at the project site, in July-August 2005, heavy and sustained flood discharge in the River Chenab followed by sudden land slides blocked the diversion tunnels causing the river to overflow and eventually led to scouring of the right bank downstream of the dam side and damaged the trail track.

He said after a series of deliberations between JKSPDC, Foreign Consultants LI, Contractor and CWC, the strategies to tackle the damages were decided and the new date of completion of the project was determined by the end of this year.

Model studies undertaken in the AHEC, Roorkee on the draft determination has not given rise to any substantial modification in the design and intake structure of the project and is expected to be sustained. The JKSPDC therefore does not foresee any changes in the revised completion date on December 31, 2007.

Earlier, A G Vakil and P Namgyal raised the discussions and drew the attention of the Government towards the loss incurred by the state due to delay in the project's completion.

UNI

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