RAWALPINDI, Jan 5: The construction of Daducha Dam on Ling River, some 25km south east of Pindi city, is in doldrums as the Japan International Cooperation Agency (Jica) has refused to fund the more than Rs4 billion project, Dawn has learnt.

Sources privy to the project said the last minute refusal from Jica had almost shattered the plans of the Punjab government and Water Supply and Sanitation Agency (Wasa) to minimize the prevailing water shortage in the city through the construction of the dam.

The project included establishment of water reservoirs and a treatment plant having a capacity of 25 million gallons per day. Sources in Wasa said the Irrigation and Power Department (IPD), in collaboration with the Small Dams Organization (SDO), had prepared PC-I of the project and presented it to the Punjab government for approval in November, 2002.

The government had also appreciated the proposal and sought financial assistance from Jica in this regard. The Japanese agency at that time had also showed its willingness to fund the project.

The sources said the SDO and the IPD had estimated an initial amount of over Rs4 billion for the implementation of the project. An amount of Rs555 million was estimated for the construction of the dam, and Rs3,500 million for the establishment of a treatment plant, a gravity main and a pumping station. Besides, laying of new pipelines from the project site to the city was also include in the project.

According to the PC-1 of the project, the dam has a catchment area of 33,489km and a storage capacity of 73,000 acre feet. The annual income from the dam had been estimated at Rs239.25 million.

After Jica's refusal, the sources said, the Asian Development Bank (ADB) was the sole hope for the government regarding project funding. However, the ADB, they said, had initially refused to fund the project as the Cantonment Board had demanded half share in the total 25 MGD water output.

The ADB, they said, funded just those projects here which involved only Wasa. The officials concerned are trying to convince the ADB to fund the project by devising a mechanism through which Wasa and cantonment will equally share the repayment of the ADB's loan, they added.

However, sources in the Rawalpindi Development Authority told said the ADB was unlikely to fund the project because the bank had already agreed to provide $80 million for the Rawalpindi Environmental Improvement Project (REIP).

In addition to this, the ADB has already provided 91 per cent amount of the recently-completed Urban Water Supply and Sanitation Project, which also included Nullah Leh extension.

Replying to a query, the sources said Daducha Dam project could not be included in the REIP owing to financial constrains as it also included the rehabilitation of affected people and establishment of solid waste collection system.