The Water and Power Development Authority (WAPDA) has signed a major Rs133.18 billion agreement for the Diamer Bhasha Dam project. The contract marks another important step toward strengthening Pakistan’s water storage and electricity generation capacity.
WAPDA awarded the HM-1 contract to the Power China–IKAN Joint Venture during a signing ceremony at WAPDA House on Saturday, October 24, 2026.
The agreement covers the supply, manufacturing, and installation of essential hydro-mechanical equipment and hydraulic steel structures.
Diamer Bhasha Dam Project Moves Forward
Under the contract, the joint venture will install specialized gates and steel structures to regulate water flows through the dam.
The work also includes equipment for flushing tunnels on both riverbanks, power intake systems, and dam outlets.
Additionally, the contractor will install steel linings, lifting mechanisms, pumping systems, and related electrical equipment.
These components will play a critical role in managing water movement and supporting the dam’s operational efficiency.
The federal government considers the Diamer Bhasha Dam a strategic infrastructure project for Pakistan’s long-term development.
The dam is under construction on the Indus River, approximately 40 kilometers downstream from Chilas.
Once completed, the project will provide a gross water storage capacity of 8.1 million acre-feet.
It will also have an installed electricity generation capacity of 4,500 megawatts.
The additional storage capacity is expected to strengthen water availability for agricultural activities and improve national water management.
Meanwhile, the planned hydropower generation capacity will support Pakistan’s efforts to expand domestic electricity production.
The latest agreement represents a significant development in the country’s efforts to improve water, food, and energy security through major infrastructure investments.
