RAWALPINDI: The Punjab government is set to decide the financing mode for the Rs52 billion Daducha Dam water supply project aimed at addressing Rawalpindi’s worsening water crisis. A senior Planning and Development Department official confirmed that a pre Punjab External Financing Assessment Committee meeting is being held in Lahore to determine whether the scheme will be funded through provincial resources or with support from foreign development partners.
The project is designed to supply 35 million gallons daily to the garrison city, where current water demand stands at 72.1 million gallons per day. Officials estimate an existing shortfall of 21 million gallons daily, which is projected to widen by 27.3 million gallons by 2030 if new supply sources are not developed urgently.
The Rawalpindi Water and Sanitation Agency has submitted the project concept and PC II documents for review. According to officials, the dam construction itself is over 35 percent complete. However, parallel work on the water treatment plant and transmission system is required to ensure timely delivery of water to urban consumers.
If work begins in the fiscal year 2026 to 27, the project is expected to be completed by 2029. The tentative financing plan proposes 70 percent funding through development partners and 30 percent from the provincial government, unless Punjab opts to finance the entire project independently.
The Rs14 billion Daducha Dam is being constructed upstream of the Ling River near Sihala to collect rainwater from the Murree and Kahuta hills. Additional components include Rs5 billion for land acquisition, Rs9 billion for a water treatment plant, Rs3.5 billion for groundwater storage, and Rs1.19 billion for laying 119 kilometers of water supply lines.
Currently, Rawalpindi relies on Rawal Dam, Khanpur Dam, and 500 operational tubewells that together supply around 64 million gallons daily. Officials stress that shifting from depleting groundwater sources to sustainable surface water is critical to securing the city’s long term water future.
