News
CDA Moves Ahead With Shahdara Dam Project to Add 5 to 10 Million Gallons a Day to Islamabad's Water Supply
By Mariam Khan
Real Estate Analyst
3 min read
The Capital Development Authority (CDA) has announced that construction of the Shahdara Dam is expected to begin soon. The announcement was made on October 28, 2026. The proposed dam could add 5 to 10 million gallons of water a day (MGD) to Islamabad's supply, subject to final technical assessments. An official procurement listing shows the project is at the contractor prequalification stage. Construction has not been confirmed as started, and the extra water is not yet being supplied. The public procurement listing shows active tenders.
The Timetable
CDA Chairman Sohail Ashraf said the approved project schedule anticipates completion within two years, and that the authority aims to cut construction time to about 20 months. Twenty months is four months shorter than two years (our own calculation). Both are targets that depend on contractors being appointed and work starting. The reports we have seen do not give a start date or a cost.
Other Water Projects
Four smaller check dams are also planned near the Margalla Hills. Another project involving 100 groundwater recharge wells is being prepared. The CDA is also working with the Japan International Cooperation Agency (JICA) on broader water-supply, sewerage and drainage planning. The reports do not say how much these projects would add to supply or when they might begin.
What Is Not Known
The reports do not say how the 5 to 10 MGD range will be narrowed, how much of Islamabad's present shortfall it would cover or who will pay for the dam. They also do not say whether JICA is providing finance.
Why This Matters for Property
Additional water infrastructure could eventually improve water availability for Islamabad households and support future residential construction. Water availability is an important consideration for buyers choosing a location. The proposed supply is not yet operating, and no immediate improvement in household connections should be assumed. The reports do not link the dam to property prices.
What This Means for Residents, Buyers and Developers
Residents should not expect better supply before the dam is built and connected to the network. Buyers and developers can ask the CDA about the water source and connection status of any scheme before paying. The signals to watch are the award of the construction contract, the start of work, final capacity figures and progress on the check dams and recharge wells.