Verification of Project Works Completed up to June 22, 2012

The purpose of the visit was to verify the completion of works and current status on the main dam, power houses 1 & 2, irrigation system, and power houses 3 & 4. The field visit was crucial for expediting the completion of the project under USAID funding. Civil works for the main dam and powerhouses 1 & 2 were completed on July 29, 2011, as per the schedule specified in the Activity Agreement. Remaining works, including construction of roads, lighting arrangements, and railings at the dam site, were completed during the month of July. Dry testing of the spillway gates was witnessed and found satisfactory. The irrigation system was 99.9% complete, with the remaining works including completion of six outlets on the left bank canal. Testing of both right and left bank canals was carried out on June 22 by releasing water in the canals. WAPDA was requested to complete the remaining six outlets prior to the contractual completion date of June 30, 2012, to enable AEAI to verify the completion of milestones as per the Payment Schedule of the Activity Agreement. The overall completion status of Units 3 & 4 was 75% as of June 22, 2012. All four units of powerhouse 1 & 2 were operating and generating 6 MW due to low reservoir level. At full reservoir level expected in early August, both powerhouses will operate at full generation capacity of 13.8 MW. In accordance with the Activity Agreement for Satpara Project, WAPDA will enter into a Power Purchase Agreement with Gilgit-Baltistan PWD to recover WAPDA's costs, including O&M, for a continued sustainable Satpara Project operation. However, WAPDA has not yet signed a Power Purchase Agreement with the local distribution company and delivering free power to PWD. Therefore, WAPDA does not have sufficient funds to purchase spare parts for the sustainability of the power plants' operations. The seepage condition at the dam was examined during the site visit. The reservoir level was increasing due to higher inflow of water in the Satpara reservoir. On June 22, 2012, the total seepage recorded downstream of the dam by WAPDA was 8 cusecs. For more accurate and precise measurements, WAPDA recently installed improved instruments, which are recording total seepage from the dam. WAPDA filled the sink holes and depressions in the reservoir area, developed in 2010, in accordance with the recommendations of the Dam Safety Experts. Implementation of the Environmental Management and Monitoring Plan (EMMP) was also monitored during the site visit. WAPDA Satpara has appointed EHS Officer and EHS Engineer to maintain day-to-day coordination and ensure that the EMMP is adequately implemented. They have also prepared a Checklist for the implementation of the Work Plan. AEAI through its sub-contractor is monitoring the implementation of EMMP, and a separate report is issued for this activity.