India and World Bank has objections over a dam that China wants to build on Indus River in Pakistan under the banner of CPEC.
Pakistan expects that China would fund the Diamer-Bhasha Dam project that both World bank and Asian Development Bank refuse to fund.
Reason for not funding by World Bank and Asian Development Bank?
India objects to the location of the dam. The location is in Gilgit Baltistan and India claims that the area is part of Kashmir.
Moreover Pakistan didn’t took a no-objection certificate from India for the project, as world Bank wanted. Therefore World bank declined funding it the $14 billion project.
Why Pakistan is interested in Diamer-Bhasha Dam project?
At the moment no huge hydro-power projects are part of CPEC. This is the reason China and Pakistan want to invest on Diamer-Bhasha.
Pakistan take on the project:
PM Pakistan approved the project last December and told Water and Power secretary to start work on the project before next year ends.
The project was first announced in 2006 and its foundations were laid in 2011.
Benefits of project if constructed:
- Generate 4,500 megawatts of electricity
- A huge new reservoir that will regulate flow of water to farms that is exposed to increasingly unpredictable weather.