ISLAMABAD: The World Bank is set to restructure the Tarbela Fourth Extension Hydropower Project (T4HP) to extend the closing date of the $390 million International Bank for Reconstruction and Development (IBRD) loan to September 30, 2027. This loan is also financing the Tarbela Fifth Extension Hydropower Project (T5HP).
According to official documents, the results framework has been updated to incorporate indicators from the World Bank Group’s Corporate Scorecard approach.
The project includes:
IBRD Loan-81440 ($400 million, fully disbursed and closed) and IDA Credit-50790 (SDR 179 million, fully disbursed and closed), approved on March 20, 2012, for financing the 1,410 MW T4HP in Tunnel 4 of the Tarbela Dam. T4HP was commissioned in 2018.
IBRD Loan-86460 ($390 million), approved on September 20, 2016, and an AIIB Loan LN 0005-PAK ($300 million) from the Asian Infrastructure Investment Bank, approved on September 27, 2016, for T5HP.
T5HP involves:
Expanding the Tarbela hydropower facility with a 1530 MW plant in Tunnel 5 of the Tarbela Dam.
Constructing a 500 kV switchyard.
Building a 500 kV Tarbela 5 Transmission Line (T5TL) from the switchyard to the Islamabad West Substation (IWS).
Implementing social and environmental management plans.
Project and construction management and supervision.
Technical assistance.
Future project preparation.
Establishing a pilot floating solar plant in the Tarbela reservoir.
The project’s goal to expand Pakistan’s electricity generation capacity is rated moderately satisfactory. However, it cannot be achieved by the current loan closing date of May 31, 2024. The extension to September 30, 2027, will allow for the completion of T5HP and T5TL.
Overall, the project’s implementation is moderately satisfactory, with key areas such as environmental and social performance, financial management, and project management rated satisfactory. Major procurements are completed, but the procurement rating remains moderately satisfactory due to incomplete updates in the STEP system.
Civil works and electro-mechanical (E&M) works for T5HP are in progress, with satisfactory performance from the E&M contractor. However, the civil works contractor is behind schedule, particularly at the critical point of Tunnel 5’s connection with the raised intake. Despite these delays, the final construction milestone remains on track for May 2027.
T5TL’s construction has improved after initial delays, and the NTDC is closely monitoring progress. T5TL connects with IWS, funded through the National Transmission Modernization I Project. If IWS completion is delayed, power from T5HP can be temporarily evacuated through an interconnection between T5HP switchyard and the switchyards of power plants in Tunnels 1-4. A Resettlement Action Plan (RAP) is being implemented, with compensation for affected landowners and workers underway.
There is a disagreement on commercial aspects of the Construction Supervision Consultant (CSC) contract, which may slow progress. WAPDA is addressing these issues to ensure continued construction.
Extending the IBRD loan’s closing date is essential for completing T5HP. Past delays caused by CSC selection issues, geological investigations, COVID-19 restrictions, and access to Tunnel 5 have been resolved. Key contracts for civil works and E&M are on schedule to support project completion by the extended deadline, with the disbursement forecast revised accordingly.
Story by Tahir Amin
