Construction and financial matters
In November 2008, the cost of the Diamer-Bhasha dam was estimated at $12.6 billion. and it will have a storage capacity of 10 cubic kilometres (8,100,000 acre⋅ft). However, it will have a power generation capacity of 4500 megawatts.
An amount of Rs 27, billion is required for the acquisition of land and resettlement of the people to be affected in the wake of the construction of the dam. Under the proposed project, Rs 10.76 billion will be spent for the acquisition of agriculture-barren land, tree and nurseries and Rs 1.638 billion to be utilized for properties and infrastructure, Rs 8.8 billion for establishment of nine model villages, Rs 62,119 million for pay and allowances for administrative arrangements, and Rs 17.7 million for contingent administrative expenses. The project also includes an escalation cost of Rs 2.234 billion at the rate of 6 per cent per year for five years and interest of Rs 4.309 billion during the implementation at the rate of 9 per cent.
Detailed drawings of the dam were completed by March 2008. As of August 2012, the project faced several setbacks due to major sponsors backing out from financing the project, as World Bank and Asian Development Bank both refused to finance the project as according to them its location is in disputed territory and asked Pakistan to get a NOC from neighboring India.
On 20 August 2013- Finance Minister of Pakistan, Ishaq Dar claimed to have convinced the World Bank and the Aga Khan Development Network to finance the Diamer-Bhasha Project without the requirement of NOC from India. He also said that the Asian Development Bank, Aga Khan Rural Support Programme and Aga Khan Foundation had agreed to become lead finance manager for the project.
On 27 August 2013- Pakistan's Finance Minister, Ishaq Dar said that work would start on both Dasu and Diamer-Bhasha Dams simultaneously. He also said that Diamer-Bhasha project would take 10–12 years to complete.
On 7 November 2013- the Chairman of Water and Power Development Authority Syed Raghib Abbas Shah claimed that his department has received 17,000 acres of land at the cost of PKR 5.5 billion from Government of [[ Gilgit-Baltistan]] and the Ismaili Community for the construction of the project.
Former Prime Minister Nawaz Sharif on December 5, 2016 approved, in principle, the financing plan for the Diamer-Bhasha dam and ordered the secretary of water and power to start physical work on the dam before the end of 2017.
On 14 November 2017- Pakistan dropped its bid [18] to have the dam financed under the China-Pakistan Economic Corridor framework as China placed strict conditions including on the ownership of the project. China had projected the cost of the dam to be $14 billion and to secure its investment China wanted Pakistan to pledge another operational dam to it.
On July 4, 2018- the Supreme Court of Pakistan directed the government to begin construction on the dam, as well as the Mohmand Dam, to resolve a water shortage. Chief Justice Saqib Nisar of the court gave a donation of 1 million Pakistani rupees for the construction of the two dams. And set up a fund for the construction of the dam. On July 6, the government of Pakistan set up a fund for the construction of the Diamer Bhasha Dam. Fundraising through bank accounts and cellular companies was initiated for participation.
On 9 September 2018- a Water and Power Development Authority official revealed that at least 12 billion dollars are required to build Diamer-Bhasha Dam. 5 billion dollars are required to build infrastructure while another 7 billion dollars are required for the power generation.
On 1 November 2018- PM-CJP fund for Diamer-Bhasha and Mohmand Dams which was opened in beginning of 3rd Quarter of 2018 i.e. in January 2019 its funds have reached US$66.7 million (i.e. PKR 9.29 billion) approximately. The status is regularly updated on the Supreme Court of Pakistan.
On 2 April 2020- it was revealed by WAPDA that Rs115.9 billion had been distributed for land acquisition of the project till February 2020.