The Ministry of Planning of Pakistan expects China to finance the construction of the 4,500 MW Diamer Basha dam as part of China's Belt and Road infrastructure plans for Pakistan and construction is aimed to start in 2018.
The major hydropower project would be built in Gilgit-Baltistan, in Kashmir, and is opposed by India due to its impact over water resources for climate-vulnerable farmlands. The US$12-14bn project, which would displace more than 4,200 households and submerge part of the Karakoram highway to China, is also struggling to raise money from international institutions. If Pakistan succeeds in securing financing from China, construction could star in July 2017. It would last 10 years and the 4.5 GW project could be operational as of 2028.
Pakistan and China are also considering other projects, including the 7,100 MW Bunji hydropower dam, that would be built on the cascade down the Tarbela dam.
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