Ghazi Barotha Hydropower Project

Mian Mobeen Shaukat, student mechanical engineering, Ghulam Ishaque Khan Institute of Engineering Sciences and Technology

Ghazi Home

PROJECT COST AND ECONIMICS.

Now you will get an over-view on the cost and economics of Ghazi Barotha Hydro Power Project. It will be completed by the year 2001. The total cost of the project is about 2.2 billion US dollars. Foreign exchange loan will constitute about 56 % of the total cost will the remaining 44 % will be provided by the Governement of Pakistan.

• Let us see who the major contributors are apart from the Government of Pakistan :

Total foreign exchange loan : 250 Million US $

This table showas that the major financers are Japan and the World Bank. Each is providing 250 million US $ i.e., 28 % of the foreign exchange loan and 15.0 % of the total cost of the project.

• Let us see what methodology and scales have been adopted to estimate the cost of the project.

1. The cost estimates are based on July 1990 price levels and at an exchange rate of Rs. 22 per US $.
2. Most prices were estimated by analytical methods, although few were based upon previous estimates or other past experiences, with appropriate adjustment.
3. The cost calculation were divided into local and foreign currency components.
4. Labour, cement, reinforcing steel, electricity, fuel and lubricants were considered as local costs and the market prices for these items were used.
5. Equipment, spare parts, M & E palnt and equipment were considered as foregin costs.
6. Tools, materials and supplies were considered to have a 25 % local and 75 % foreign currency comoponens.
7. Custom duties and taxes on imported equipment are not included in these estimates.

* Since, the exchange rate of US $ in Pakistani Rupee has risen considerably, as compared to the exchange rate discussed above, so the total cost has changed accordingly.

• SUMMARY OF PROJECT COST BASED ON JULY 1990 PRICES WITH LOCAL CURRENCY ADJUSTED FOR INDIRECT FOREIGN COMPONENT. ( US $ 1.00 = Rs. 22 )

ESTIMATED COST

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