Pakistan turns down China's bid to include Diamer-Bhasha dam in CPEC

Pakistan has turned down China's offer of assistance on the Diamer-Bhasha dam after Beijing placed strict conditions including ownership of the project, a leading Pakistan daily reported.

“Chinese conditions for financing the Diamer-Bhasha Dam were not doable and against our interests,” Water and Power Development Authority (Wapda) Chairman Muzammil Hussain told reporters.

China tried to push the Diamer-Bhasha dam under theChina-Pakistan Economic Corridor (CPEC) framework but it was rejected by Pakistan. China wasreportedly ready to fund the $14 billion project.

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The minister said the Chinese conditions were about "taking ownership of the project, operation and maintenance cost and securitisation of the Diamer-Bhasha project", while adding China pledged another operational dam, Pakistan's Express Tribune reported.

"These conditions were unacceptable," the minister said.

Pakistan has been facing problems financing the Diamer-Bhasha dam after protests from India and refusal by World Bank and Asian Development Bank (ADB) to fund its construction. Pakistan had decided to build a reservoir instead but it has run into delays, reports said.

China and Pakistan have signed six pacts to boost cooperation on the $50 billion China-Pakistan Economic Corridor, including one on building an airport at the strategic Gwadar port city.

In May, ousted prime minister Nawaz Sharif hadattended a presentation made by China's National Energy Administration (NEA) on the construction of Bhasha Dam, a project which he said is of critical importance for the future of Pakistan.

Pakistani media reported that Chinese companies had "conducted survey and studies"on the North Indus Cascade project.

The report said China's interest in providing $50 billion to fund the project could generate 40,000 MW hydroelectricity which the country desperately needs due to its depleting water resources.

China's ambitious One Belt, One Road initiative(OBOR) seeks to link road and waterways throughout Asia spanning east and west, with Pakistan being the pivotal point of trade.