Mohmand Dam Project Cost Rises to Rs. 666 Billion

The Mohmand Dam's price has jumped 115% to Rs.666 billion, with currency loss, design tweaks and flood damage cited as key drivers.

NationPulse Desk

Oct 24, 2026 · 12:06 PM 2 min read

Key takeaways

Mohmand Dam's cost has risen to Rs666 billion, a 115% increase over eight years.

WAPDA presented the revised cost to the CDWP this week, but no decision was reached.

The original Rs310 billion estimate from April 2018 now includes an additional Rs356 billion.

Construction is about 57% complete, with Rs275 billion already spent.

The dam is being built by China's Gezhouba Group and Pakistan's Descon Engineering.

Pakistan's under-construction Mohmand Dam hydropower project now carries a price tag of Rs666 billion, a 115 percent increase over eight years, officials said.

Authorities say the surge stems mainly from the rupee's fall against the dollar, plus design revisions, the 2022 floods and security challenges, all of which have affected costs and the schedule.

The Water and Power Development Authority (WAPDA) has put forward the revised figure of Rs666 billion. This proposal was taken to the Central Development Working Party (CDWP) this week, but no decision was made because of time limits.

The CDWP serves as the first step in approving large projects before they move to the Executive Committee of the National Economic Council (ECNEC) for final sign-off. The dam was originally approved at Rs310 billion in April 2018 with a target completion of September 2025; the new plan adds Rs356 billion.

Project managers told the Planning Commission that currency loss, design changes, floods and security-related issues were the main causes of the higher cost and delays.

WAPDA estimated that about 51 percent of the overall increase resulted from the rupee's depreciation. Because the venture involves both local and foreign-currency spending, exchange-rate swings lifted the rupee value of foreign costs.

The Planning Commission has asked WAPDA for details on payments under dollar-denominated contracts and the effect of exchange-rate changes, noting that simply converting foreign contracts at the current rate is inadequate and that contract terms and payment obligations need review.

According to documents, the revised estimate sets construction costs at Rs267 billion, up Rs153 billion or 134 percent from the original estimate. The power-generation component now stands at Rs399 billion, an increase of Rs204 billion or 105 percent.

Documents indicate that Rs275 billion had been spent on the dam as of last month, with construction about 57 percent complete. The project is being executed by China's Gezhouba Group Company Limited in partnership with Pakistan's Descon Engineering Limited.

The 2022 floods in the Swat River damaged water-diversion tunnels, halting construction for an extended period. The Planning Commission called the delays and cost overruns concerning and suggested a third-party audit of financial and physical progress.

The commission also advised preparing a revised financial plan. When finished, the Mohmand Dam is expected to add 1.29 million acre-feet to Pakistan's total water-storage capacity.