Kala Bagh Dam : Important for Economic Growth

The installed power generation capacity of the proposed Kala Bagh Dam will be 2,400 MW which could be enhanced to 3,600 MW. Due to conjunctive operation the output of Tarbela will also increase resulting in an enhancement of national grid peaking capabilities by 660 MW. The annual energy generation at Kala Bagh will be equivalent to about 20 million barrels of crude oil.The annual net benefit due to power production by Kala Bagh Dam will be of the order of Rs. 30-35 billion.

1. Exports will become more competitive due to ample availability of electric power as an input.
2. There will be tremendous saving of natural gas as, due to substitution effect, it would be needed to run turbines for power production.
3. Load-shedding will be reduced/alleviated resulting in enhanced production, optimum utilization of fixed infrastructure, boost to exports and improved quality of life of individuals.
4. Ample supply of power to agriculture, industrial sector and village/rural electrification programmes will increase productivity, output and standard of living through enhancement of generated income.
5. After expiration of the useful life of Warsak Dam on Kabul River, Kala Bagh Dam can utilize the aqua resource of river Kabul for economic benefits.
6. National economic resources will be saved due to lower cost of production of the hydel power that would offset the industrial and agricultural production costs and overall cost of living in the society. The balance of payment would improve in the long run due to lesser imports of crude oil.
7. Due to storage of water in the reservoir, there will be a great reduction in the severity of Damage to life and property by floods in the downstream areas of the Dam site. The yearly benefit through alleviation of this threat would be about Rs. 6-7 billion.
8. Irrigation resources of the country will increase due to optimum release of water to about half a million acres of dry alluvial plains. The quality of agricultural land will improve due to increased productivity and output per hectare. Resultant, supply of five commodities namely rice, cotton, wheat, oil seed and sugar will increase enhancing the consumer surplus. The accrued benefits due to enhanced irrigation will account for approximately Rs. 3.5 billion to Rs. 4 billion annually.
9. The livestock output will expand due to enhanced production of fodder, rice stalk, maize, wheat straw, sugarcane and mullets.
10. There will be new employment opportunities for about 30, 000 people during civil and mechanical Dam construction works. It will be long run programme of employment creation at urban construction sites and rural agriculture. Proliferation of construction activities would directly improve the regional economy of Kala Bagh and surrounding areas.
11. The national output will rise, giving boost to overall national economic growth and increase of GDP.
12. Government revenues will increase and overall fiscal deficit as percentage of GDP will decrease.
13. Government organizations and NGOs will be benefited by carrying out research and development (R&D) feasibility studies, developing computer software, using and obtaining heavy earth moving equipment. Also, the overall knowledge base of our Civil and Mechanical engineers will be broadened.
14. There will be a collaboration of between Pakistani and foreign firms for building the Dam which will create an atmosphere of technology transfer to Pakistan.
15. WAPDA will be able to serve a wider market in a given time increasing its profit potential and reputation.
16. Kala Bagh Dam, to be the biggest in Asia, will bring esteem and honor to the country, by presenting more favorable opportunities to foreign investors and credit supplying agencies.