November 21, 2017

HISAR FOUNDATION: 3rd KARACHI INTERNATIONAL WATER CONFERENCE

WAPDA’S ROLE AND PLANS LINKING TO OPPORTUNITIES FOR PRIVATE PLAYERS

PAKISTAN WATER & POWER DEVELOPMENT AUTHORITY

Our Survival – Water Economy

• Water is an economic good

• Promote its conservation and efficient use

• 60% population directly engaged in agriculture & livestock

• 80% of Pakistan’s exports based on these sectors

• WAPDA is the biggest stakeholder & main architect of water economy of Pakistan.

Water Availability

• Storage is a safety buffer to regulate the variability of water and optimize its use.

• Underscores the need for Resource planning and recycling for providing maximum availability.

• Setting water allocation priorities in the following order:

Drinking water, Irrigation, Hydropower, Navigation, Industrial and other uses.

AT A TIME WHEN WATER IS POISED TO OUTSTRIP OIL AS A VITALRESOURCE. ASIA IS AT THE CENTER OF GLOBAL WATER SECURITYCHALLENGES

4

ASIA’S PER CAPITA FRESH WATER AVAILABILITY IS LESS

HALF THE GLOBAL AVERAGE

Continent Per Square Kilometer of Territory

Thousands of cubic meters Per Capita

Europe 277 4.24

North America 324 17.40

Africa 134 5.72

Asia 311 3.92

South America 672 38.30

Oceania 268 83.60

Different Continents’ estimated water availability

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THE WORLD’S WATER AVAILABILITY

• Only about 3% is fresh water and rest is Saline

• Of the 3% Fresh Water,

70% is locked in glaciers

29% is found underground in aquifers

1% is found in lakes, rivers, & streams

Oceans 97% Fresh

3%

70%Glaciers

Aquifers

Lakes Rivers & Streams

29%

1%

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7

WATER AVAILABILITY vis-a-vis POPULATION

5260

4159

2838

2129

1611

1259

908 887 861 833 804769

3443

63

84

111

143

197 203

209 216224

234

30

60

90

120

150

180

210

240

270

0

1000

2000

3000

4000

5000

6000

1951 1961 1971 1981 1991 2001 2017 2020 2025 2030 2040 2050

Po

pu

lati

on

(M

illi

on

)

PER

C

AP

ITA

AV

AIL

AB

ILIT

Y (m

)

3

YEAR

908 m3/capita

197 Million

POPULATION

GROWTH

PER CAPITA

AVAILIBILITY

PAKISTAN’S WATER SECTOR

Indus Basin vs Other River Basins

RIVER

BASINS

AVG. ANNUAL FLOW (MAF)

USABLE STORAGE

(MAF)

% STORAGE

COLORADO 12 59.62 497

NILE 47 132 281

SUTLEJ BEAS & RAVI

32 11.32 35

INDUS BASIN 145 13.86 10

WORLD AVERAGE

20,000 8,000 40

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29 MAF FLOWING TO SEA WORTH US$ 14.5 B

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WAPDA Act 1958

Autonomous and Statutory body

10

Unified and coordinated development of the water and power resources of the country

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WATERStorage

Irrigation CanalsDrainage

Water logging & SalinitySCARP

Water DisputeDomestic/ Commercial use

HYDELPOWER

THERMALPOWER

Food and Energy Security

Critical water & energy needs

Climate Change

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WAPDA VISION

Future strategies, financial model and action plan tomeet the growing needs of water conservation andenergy to achieve appropriate energy mix whichconforms to our true potential in conformity withnatural hydrology and is in sync with national energyand security strategy

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1. WATER

2. WATER

3. WATER

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INDUS CASCADE PAKISTAN’S MOST PRECIOUS ASSET

Indus enters PakistanAltitude 8,430 ft

Drop of 7,030 feet

Multiple Sites along this stretch

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Altitude 1,400 ft

Skardu

Tungus

Yulbo

Bunji

Basha

Pattan

Thakot

Dasu

Tarbela/GB

Kalabagh

Shyok 640 MW

1,200 MW

2,200 MW

2,800 MW

7,100 MW

4,500 MW

4,320 MW

2,400 MW

4,000 MW

7,748 MW3,600 MW

40,508 MW

5.5 MAF

1.5 MAF

6.4 MAF

6.0 MAF

OPPORTUNITIES FOR PRIVATE PLAYERS

• WAPDA provides multiple investment opportunities

along the Indus Cascade

• Projects for investment are commercially viable and

bankable

• Incentives for private sector financing on the strength

of stable cash flows

• Revenue in excess of Rs 120 billion (FY 2017-18)

• Unencumbered assets of over USD 30 billion

INNOVATIVE FINANCING STRATEGIES

• Long term, capital intensive nature of our projects underscores the need to develop innovative financing techniques

• WAPDA leverages its financial strengths to package investment opportunities

• Raised Rs 144 billion from local banks (unprecedented in Pakistan’s history) for Dasu HPP in Mar 2017

• 40% of this was raised as Asset Backed Facility capitalizing on the liquidity available in Islamic mode of financing

WHAT ARE WE DOING

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KACHHI CANAL PROJECT

DERA BUGTI - 72,000 ACRES INAUGURATED BY

PRIME MINISTER ON 14 SEP 2017

Taunsa Barrage

Kachhi Canal Reach-ITotal Length 363 km

In Punjab 306 kmIn Balochistan 57 km

BALOCHIISTAN

PUNJAB

SINDH

Canal in Balochistan Starts

Phase-I, 72,000 Acres (CCA)Main Canal 57 km in

BalochistanDistribution System = 81 km

Distt: Dera Bugti

Phase-II297,000 Acres (CCA)

Main Canal 98 kmDistribution System =

632 kmDistts: Bolan &

Naseerabad

Phase-III344,000 Acres (CCA)Main Canal 39 km in

BalochistanDistribution System = 786 kmDistts: Bolan, Naseerabad &

Jhal Magsi

Provincial Boundary

Total Area in Three Phases = 713,000

Acres (CCA)

Phase-I = 72,000 Acres

Phase-II = 297,000 Acres

Phase-III = 344,000 Acres

Total Kachhi Canal Length in all

Phases = 500 km

Phase-I 306 km in Punjab, 57 km in

Balochistan

Phase-II 98 km in Balochistan

Phase-III 39 km in Balochistan

Total Canal in Balochistan =

57+98+39 = 194 km

306 km

363 km

461 km500 km

Pat Feeder Canal

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KACHHI CANAL PROJECT

SYST

EM

• 41 KM NE OF MUZAFFARABAD

• DIVERSION OF NEELUM RIVER WATER

NEELUM-JHELUM HYDROPOWER PROJECT

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NEELUM-JHELUM HYDROPOWER PROJECT

• Installed capacity 969 MW

• Annual Generation 5,150 GWh

• Project Cost Rs 500 Billion

• Commissioning / Inauguration 28 Feb, 2018

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VIEW OF NJHP DAM SITE (FROM U/S)

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ROCKFILL DAM – VIEW FROM D/S

• Design level 1019 masl

• Level achieved 1000 masl

• Target Date 15 Oct 2017

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CONCRETE LINED TUNNEL VIEW

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TARBELA 4TH EXTENSION HYDROPOWER PROJECT

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• Installed Capacity 1,410 MW

• Commissioning / Inauguration 25 Feb, 2018

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TARBELA 4TH EXTENSION HPP

TARBELA 4TH EXTENSION HPP

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WAY FORWARDNational Water Policy

Water Storage (Critical Need)

Conservation Mechanism

Adoption of High Efficiency Irrigation System

Innovative Financing Strategies

Institutional Robustness, Research & Capacity Building

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Project Development Strategy

Enhance Agricultural Productivity

Sustainable Urban Water Services