Compensation for Chinese Victims at Dasu Hydropower Project

ECC Greenlights Compensation for Chinese Victims at Dasu Hydropower Project

Islamabad, May 24, 2024 – The Economic Coordination Committee (ECC) of the Cabinet has given the nod to a compensation plan amounting to US$2.58 million for the Chinese nationals affected by incidents at the Dasu hydropower project. This decision came following a proposal put forward by the Ministry of Water Resources.

Dasu Hydropower project: ECC approves compensations for Chinese victims

Chaired by Finance Minister Muhammad Aurangzeb, the ECC convened to approve a technical supplementary grant totaling $2.58 million, alongside an additional Rs2.5 million designated for the Ministry of Water Resources.

These funds are earmarked as compensation for both Chinese and local individuals impacted by the Dasu Hydropower Project.

According to sources familiar with the matter, the Ministry of Water Resources underscored the significance of the Dasu Hydropower Project as a cornerstone initiative for Pakistan.

This project, backed by the World Bank, is slated to bolster the country’s energy generation capacity by a substantial 4,320 megawatts upon completion.

However, the project faced setbacks due to terrorist attacks, occurring on July 14, 2021, and March 26, 2024, respectively. The latter incident resulted in the tragic loss of six lives, including five Chinese nationals and one Pakistani driver, associated with M/s China Gezhouba, the main contractor for civil works.

Following these incidents, the Water and Power Development Authority (WAPDA) urged the Ministry of Water Resources to establish an Inter-Ministerial Committee (IMC) to address compensation concerns.

This initiative was prompted by the previous terrorist attack in July 2021, which claimed the lives of 10 Chinese nationals and injured 26 others.

Consequently, discussions ensued, leading to the formation of an IMC tasked with devising a suitable compensation package for the affected parties.

After meticulous deliberation, the ECC, in January 2022, sanctioned a compensation amount of US$11.6 million for the families of the deceased Chinese nationals.

Building upon this precedent, the recent incident in March 2024 prompted similar deliberations. During the 20th meeting of the Project Steering Committee (PSC) for Dasu HPP, convened on May 9, 2024, the matter of compensation was tabled for consideration.

Subsequently, an IMC was constituted on May 9, 2024, comprising key stakeholders to determine an appropriate compensation package.

Following thorough evaluation, the IMC recommended a compensation amount of US$2.58 million, aligned with previous criteria endorsed by the Cabinet.

Furthermore, the committee proposed a compensation of Rs2.5 million for the Pakistani national who lost his life in the incident. These recommendations received endorsement during the 21st meeting of the PSC for Dasu HPP, held on May 14, 2024.

To facilitate the disbursement of compensation, the Ministry sought ECC approval for various procedural aspects, including the selection of compensation options and the allocation of funds.

Additionally, it proposed the transfer of approved amounts to the Pakistan Embassy in Beijing for onward distribution to the families of the deceased Chinese nationals.

In other deliberations, the ECC addressed several proposals for technical supplementary grants across different sectors, underscoring its commitment to addressing diverse financial needs and obligations within the country.

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