The development is likely to spark a controversy for Descon is associated with Abdul Razak Dawood and can create a conflict of interest.
Islamabad (Pakistan Point News – 23rd February, 2019) The Water and Power Development Authority (WAPDA) has given the construction contract of Mohmand Dam hydropower project to a joint venture of Descon engineering and China Gezhouba Group.
Descon is owned by Adviser to the prime minister on Commerce, Textile, Industry & Production and Investment Abdul Razak Dawood while China Gezhouba is a Chinese Company.
The development is likely to spark a controversy for Descon is associated with Abdul Razak Dawood and can create a conflict of interest.
Wapda, however, said the contract for civil and elctro-mechanical works for the project has been awarded after a comprehensive bidding and evaluation process.
The authority in a meeting also directed project authorities to issue Letter of Acceptance (LoA) as per the rules.
Following the signing of the agreement, the contractor will mobilise at site in March 2019.
The mega multipurpose hydropower project Mohmand Dam, an initiative of the Federal Government, carries huge potential to meet Pakistan's energy and water requirements in terms of electricity generation and irrigation besides provision of clean drinking water facilities to the inhabitants of Peshawar.
Mohmand dam will be constructed on River Swat about 48 kilometers from Peshawar in Mohmand tribal district and its reservoir area extends upstream to Mohmand and Bajaur districts in Khyber Pakhtunkhwa.
The project is scheduled to be completed in five years and eight months and on completion will store about 1.2 million acre feet (MAF) of water and generate 800 megawatts (MW) of low-cost hydel electricity.
It will alleviate poverty by providing job opportunities to thousands of people and labourers besides locals in the project area and its annual benefits are estimated about Rs 51.6 billion.
