Large dam projects are a subject of perpetual debate, particularly with ever increasing demand and declining supply of fresh water. The World Bank (WB) has made it clear that funding the Diamer-Basha Dam in Pakistan Occupied Kashmir (POK) would be conditional upon concerns over the possible environmental and social impacts of the project being duly addressed.

Key concerns

The proposed Diamer-Basha project is located in that part of POK called the Northern Areas. The Diamer-Basha dam project is expected to enhance water supply by creating a mega reservoir to store 7.2 MAF of water and create an additional power generation capacity of 4,500 MW. The dam site has come into controversy for several reasons. First, the location of the dam falls inside the disputed territory of Kashmir on the Pakistani side of the LoC. Second, the project involves huge costs owing to its geographical setting in the precipitous slopes of the Karakorum ranges. Third, the Diamer-Basha dam site is located close to the collision boundary of the Asian tectonic plates. Fourth, one of the world’s most notable archeological sites would be inundated by the dam, wiping out remnants of the indigenous cultures of the Gilgit and Balti people.

Implications of WB conditions

The WB Chief Water Specialist for South Asia, David Grey led the WB delegation on a week-long visit to Pakistan in March to conduct a preliminary review of the proposed dam and the hydropower generation project. The WB team has also been concerned about the state of water releases to stop sea intrusion, especially to downstream Kotri into the sea to balance the Indus Delta’s ecology. A recent Ministry of Water and Power Resources study, conducted by a committee headed by A.N.G. Abbasi has recommended that 8.6 million acre feet (MAF) of water be released to stop sea intrusion into coastal areas.

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