China Eximbank provides $212.07 million preferential buyer’s credit for Nai Gaj Dam Project (Linked to Record ID#35904)

Project narrative

On July 25, 2009, the Export-Import Bank of China (China Eximbank) finalized a $212.07 million preferential buyer’s credit (PBC) agreement for the Nai Gaj Dam Project. The project is reportedly being implemented on a public-private partnership (PPP) basis. The Nai Gaj Dam Project is a dam across the Gaj river in the gorge area at the edge of Kirthar range about 65 km (40 miles) northwest of Dadu city in Sindh Province. Its locational coordinates are 26°52′32″N 67°19′14″E. With the construction of the proposed dam, it was envisaged that the flood waters of Gaj river would be stored in a reservoir, which would be annually available for developing 40,000 acres of irrigated agriculture. It was also envisaged that this project would produce 4.2 MW of power generation and that the damming of Gaj River would save the flood water for irrigated agriculture development, power generation, water supply for drinking and other domestic uses and fresh water for Manchar Lake. NEIE-SMADB-LILLY-RMS (JV.), a joint between Chinese and Pakistani companies, was selected as the contractor responsible for project implementation on January 13, 2011. Construction then began in May 2012. An Environmental Impact Assessment was completed in 2015. Around 51% of the construction work was completed as of 2018. However, this project has encountered major delays and cost increases. The dam is expected to reach completion in 2024. This project has faced accusations of corruption and financial irregularities.