Can Mega Dams be built be donations?


By: Khurram Husain


  1. Introduction – Water Crises in Pakistan
  2. Disagree with the Topic (Proceed with Thesis Assertion)
  3. Causes for Negation
    • Mega Reservoirs want an infinite sum of money
    • Mathematically the gathering will take 199 years (Rs. 20m/day)
    • The goal for subsequent 12 months will likely be collected in three.2 years
    • Double the Numbers – nonetheless 1.5 years
    • Infrastructure finance can’t be crowd-sourced
    • A typical doner lacks consciousness
    • Who would be the authority to transact these funds?
    • What are the principles of enterprise?
    • Who will supervise the correct utilization of funds?
  4. Such JOKES of great issues had been carried out in previous
    • Pervez Musharraf’s President’s Reduction Fund after the earthquake of 2005
    • Nawaz Sharif’s ‘qarz utaro, mulk sanwaro’ scheme
    • Related scheme by Zulfikar Ali Bhutto
  5. Conclusion
    • Public funds can’t be run on this means, particularly infrastructure finance.

Mega Dams and Donations - Tech Urdu
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One can admire the chief justice of Pakistan’s sensitivity to the rising water crisis in Pakistan, however with all due respect, this isn’t how infrastructure finance is completed. You don’t crowd-source a mega dam. The truth that this even must be mentioned is embarrassing, to say the least.

Simply take into account a number of questions that come up when making an attempt to make use of voluntary donations to fund the Diamer-Bhasha dam, whose value has been given as Rs1.450 trillion. This determine is taken from a briefing given by water and energy officers at a listening to of the Senate Standing Committee on Planning, Improvement, and Reform. The price of reservoir development was given as Rs650 billion, and the remainder for energy generators and related infrastructure, and land acquisition and resettlement.

Now let’s do some math on this. As of writing, the full quantity deposited on this account was Rs32 million. For the reason that account is proven as being open since July 6, let’s assume solely three of these days had been functioning; that involves virtually Rs10m per day. Subsequent let’s assume this may choose up the tempo since tacit stress has come to use on banks to lift funds from their workers (in a gathering held on Tuesday). Precisely how ‘voluntary’ the contributions will likely be is a separate dialog. For the second, if we assume that on common, the account sees an influx of Rs20m per day (which is very optimistic), then it would take 72,500 days to succeed in the goal or 199 years.

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Wait a minute, some folks will say. All the cash doesn’t have to be accessible up entrance with a purpose to start work! Honest sufficient. Take into account one other angle. For subsequent 12 months, the quantity allotted for development of the dam a part of the venture alone is Rs23.68bn as per the Public Sector Improvement Programme (PSDP) doc on the Planning Fee’s web site.

Now do the mathematics. At Rs20m per day, it would take 1,184 days to succeed in the goal of Rs23.68bn, or three.2 years. Which means even subsequent 12 months’s PSDP allocation (for the dam half alone) is not going to be potential to fulfill the quantity.

You possibly can change the assumptions. Let’s say the contributions are available bigger than what I’ve assumed (which, thoughts you, is beneficiant). Let’s say it’s double the scale. That cuts down the interval by half, that means it would take greater than a 12 months and a half to succeed in subsequent 12 months’s goal alone.

Let’s say as an alternative that the contributions are usually not meant to pay for the complete dam, however solely to complement authorities allocations for the venture. Even then, a 12 months’s consumption of Rs7.3bn (assuming a Rs20m per day common contribution for the 12 months) is not going to even be sufficient to pay for a portion of the resettlement value of the venture.

Public finance will not be a joke, the state can’t be run like a charity, and infrastructure finance can’t be crowd-sourced like this. Thoughts you, the calculations right here assume a mean contribution fee of Rs20m per day, day by day, for years and years on finish. How lengthy will the momentum behind this endeavor maintain itself? Weeks? Months?

Earlier than persons are requested to contribute their hard-earned cash for any trigger, they’re entitled to ask a number of fundamental questions. What is going to this cash be used for? Who can have the authority to transact these funds? What guidelines will govern its distribution? How a lot of an influence will my contribution have?

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Maybe these questions should be answered first. For instance, will the cash from the account be disbursed on to the purpose the place the prices are coming from, or will it merely be handed to Wapda, the water and energy division, or the finance ministry? If it’s the former, then let’s take one instance. If a technical marketing consultant must be retained to advise on what kind of cement to make use of given the extraordinarily massive annual temperature variation within the area, and the attendant growth and contraction that the dam construction will endure in a typical 12 months making the selection of concrete fairly essential, who will determine which marketing consultant is best suited for the job? What standards will likely be used to make the choice?

There are millions of such selections that must be made in mega tasks of this type. What are the principles of enterprise based on which these funds will likely be distributed? If the plan is to easily hand them over to Wapda, who will supervise the funds to make sure their correct utilization? How a lot experience and expertise does that individual have within the execution of large, extremely technical tasks of this type?

This isn’t the primary time joke has been made out of a really critical matter. After the earthquake of 2005, Pervez Musharraf launched an analogous fund known as the President’s Reduction Fund. As soon as launched, comparable tacit stress ways had been used to get folks to pay up, and one after the other numerous corporations lined up saying ‘we’re happy to contribute’, and the quantities had been one million right here, two million there, till curiosity dried up and everybody moved on.

Likewise, Nawaz Sharif launched a ‘qarz utaro, mulk sanwaro’ scheme in his second time period, within the late 1990s, in an effort to get donations to assist repay Pakistan’s exterior debt. That too resulted in an embarrassing whimper.

An analogous scheme by Zulfikar Ali Bhutto in his final 12 months. The tv adverts requested everybody to contribute one rupee a day, which the advert promised could be used for improvement functions. The visible used for example ‘improvement’ was a cement elevator. And that was additionally that.

Truth is, modern-day public funds can’t be run on this means, least of all in terms of infrastructure finance. It’s time to develop up and face the information: till we repair our water-pricing regime, there isn’t a means out of this disaster.

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Courtesy: DAWN

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