By Moaaz Manzoor

The Ministry of Water Resources has proposed six new projects covering dams, canals, hydropower rehabilitation and institutional strengthening with a combined estimated cost of Rs469.027 billion for inclusion in the Public Sector Development Programme (PSDP) 2026-27.

According to documents available with Wealth Pakistan, the proposed portfolio includes major dam and canal projects, rehabilitation of hydropower infrastructure, and measures to strengthen environmental management and emergency communications within the water sector.

Chiniot Dam is the largest project on the new-project list, carrying an estimated cost of Rs298.782 billion. It accounts for nearly two-thirds of the total estimated cost of the six initiatives and represents the biggest proposed investment in the portfolio.

The Kachhi Canal Project Phase-II is the second-largest scheme, with an estimated cost of Rs69.992 billion. The project covers the canal section from RD 1322+000 to RD 1512+000, according to the ministry’s documents.

Another major proposal is the construction of the Burj-e-Aziz Khan Dam Project in Pishin Lora, Quetta, at an estimated cost of Rs63.523 billion. The inclusion of the project reflects continued attention to water infrastructure development in Balochistan, where water availability remains central to domestic and economic activity.

The ministry has also proposed rehabilitation and repair works for the Head Race Tunnel of the Neelum Hydropower Plant. The project is estimated to cost Rs35.832 billion and is intended to address infrastructure requirements associated with the hydropower facility.

Two comparatively smaller projects focus on strengthening institutional and operational capacity within the water and hydropower sectors.

The first, estimated at Rs454.56 million, seeks to build environmental and social capacity for hydropower development in Pakistan under a World Bank grant facility. The initiative is designed to strengthen institutional arrangements associated with environmental and social management of hydropower projects.

The second involves improving the high-frequency radio network of the Water Resources Management Directorate of the Water and Power Development Authority. The project carries an estimated cost of Rs443.61 million and is aimed at improving communications within the water resources management system.

The documents list the six schemes as new projects but do not provide individual PSDP allocations for FY2026-27. Their inclusion therefore represents the proposed project pipeline, while the actual implementation will depend on approvals, allocations and subsequent releases.

The overall proposed cost is heavily concentrated in the three large infrastructure schemes—Chiniot Dam, Kachhi Canal Phase-II and Burj-e-Aziz Khan Dam—which together account for Rs432.297 billion, or more than 92% of the total estimated portfolio.

The remaining projects focus on rehabilitation, environmental and social safeguards, and communications infrastructure, indicating that the proposed programme combines new physical investment with measures intended to strengthen the management of existing and future water-sector assets.

The proposed projects form part of the Ministry of Water Resources’ broader PSDP 2026-27 planning exercise, which covers both hydropower and water-development schemes across the country.

Credit: INP-WealthPk