Cost-Benefit Analysis of Large Dams in Pakistan

Abstract

Water scarcity is a pressing issue and one for which the severity will only increase with every passing day for many countries globally. Pakistan is amongst the countries that has seen a drastic reduction in the availability of freshwater per person. From 1950-2000, Pakistan’s availability of freshwater per person reduced by 77%. At the moment, the value is alarmingly lesser than the critical limit of 1000 cubic metres per person per annum. Water conservation and sustainable solutions for gaining the most out of every drop of water are essential to ease the situation. Amongst some of the more feasible and necessary measures, having large dams outweighs the rest. It has been over 35 years since the multi-purpose Khanpur dam was constructed in 1984. Likewise, the major dams that support the backbone of the economy till now-Tarbela and Mangla date back to 1976 and 1965. Even today, the agrarian economy of Pakistan reaps humongous benefit from these two dams. It is unfortunate that no other large dam has been brought to operation since then; consequently, the water scenario for Pakistan only deteriorates. This study takes into the account the functions of a large dam in Pakistan for highlighting the benefits we derive from them. The three primary functions ofpower generation, water regulation for agriculture and flood mitigation were used for calculations. Owing to its significance, the cost-benefit analysis is carried on Tarbela dam in three domains mentioned above. The costs incurred by the large dams were placed on one side and the benefits derived were calculated and placed on the other side. As expected, the benefits largely outweighed the costs of the dam. The analysis shows that if all the annual profits generated by Tarbela in all three areas are considered at present worth, it recovers all its cost within three and a half years only. The analysis puts light on the further profits that the large dam will provide and lead to pave path for the economic prosperity of Pakistan. The clear results of the analysis strongly support the construction of the Diamer Bhasha dam and evidently do not leave room for much argument against large dams.