USAID ENERGY POLICY PROGRAM MONTHLY REPORT MARCH 2013 COMPLETION OF GOMAL ZAM DAM, HYDROPOWER AND TRANSMISSION LINE PROJECT

The project, funded by the USAID Energy Policy Program, aimed to provide electricity to South Waziristan and Khyber Pakhtunkhwa (KPK) regions. The main dam and spillway concrete works, along with mechanical testing of dam fixtures, were 100% completed in November 2011. Transmission line erection was completed, and interconnection with the switchyard was underway, enabling the power plant to transmit electricity to the target areas. Hydropower and switchgear components were also completed. A field visit by the EPP to the Gomal Zam Multipurpose Dam Project on March 7, 2013, monitored the progress at the site and identified the main reasons for delay in the commissioning of the powerhouse, switchyard, and transmission line. The reservoir level was 725 meters above sea level, adequate for sustained testing and commissioning of the power plant. However, the project work was slowed down due to security reasons and delay in payments to the contractors due to WAPDA's weak financial position. To expedite the completion of the project, USAID contributed an additional $5 million on the request of the Government of Pakistan (GOP). Efforts were underway by the FATA administration and WAPDA to release eight project staff members who were abducted in August 2012. A follow-up visit to Gomal Zam was conducted by Hagler Bailey to ensure environmental compliance and implementation of the Environmental Mitigation and Monitoring Plan (EMMP). The EPP submitted a post-inspection environmental report to USAID for review. An Amendment No. 4 to the Activity Agreement was signed on March 18, 2013, with a revised payment schedule and an increased agreement amount of $45 million. The completion date of the project, including the irrigation component, was set for September 30, 2013. As of March 2013, the total disbursement of $41,589,000 was made out of the committed $45 million USG funding for the Gomal Zam (energy component) project.