Tarbela 5th Extension Project Consultants Threaten to Quit Over Non-Payment

WAPDA-MoUs

HARIPUR: The foreign consultancy firm overseeing the Tarbela 5th hydropower project (T5 HPP) has announced the suspension of its services due to a payment dispute with the Water and Power Development Authority (WAPDA), sources report.

Tarbela 5th Extension Project Consultants (T5C), a consortium of Mott MacDonald England and MM Pakistan, issued a termination notice to WAPDA, citing several unpaid invoices. The contract, signed on April 13, 2019, commenced work on the 1,530 MW project in August 2021 with a completion deadline of May 2026.

Mark Gill, the project manager for T5C, outlined the reasons for termination in a letter dated May 17, noting the lack of payment following a notice issued on March 14. The consultants’ services are set to end on June 16, 2024, unless WAPDA addresses the overdue payments.

Despite the termination notice, WAPDA officials are optimistic about resolving the issue. A senior WAPDA official expressed confidence in placating the consultants through negotiations, ensuring the project’s timeline remains unaffected.

The consultancy firm employs over 100 workers on the project, whose jobs are at risk if the notice is not withdrawn. WAPDA has raised concerns over the consultants’ expenses, urging cost control amid the country’s financial constraints.

The Tarbela 5th hydropower project is partially funded by the World Bank ($390 million) and the Asian Infrastructure Investment Bank ($300 million).

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