ISLAMABAD: The World Bank has called on the government to increase budget allocations for the Tarbela 5th Extension Hydropower Project (T5HP) during the mid-year budget review, citing a significant shortfall in rupee cover requirements.
In a letter to Economic Affairs Division (EAD) Secretary Dr. Kazim Niaz, World Bank Country Director Najy Binhassine commended the satisfactory progress of T5HP, despite challenges, including the unexpected termination of a supervision consultant’s contract. WAPDA swiftly implemented alternative supervision arrangements to maintain project momentum and mitigate risks to Tunnel 5 and the Tarbela Dam’s operations.
A new supervision consultant has been hired, and project management has improved under the T5PIC team, which includes experts with experience from the Tarbela Fourth Extension Project. A coordinated schedule for commissioning the power plant is being finalized, with stakeholders, including contractors Power Construction Corporation of China Limited (PCCCL) and Harbin Electric International, aligning milestones for project completion.
The World Bank emphasized the importance of rehabilitating Tunnel 5 gates, urging that technical discussions on bulkhead and service gates be finalized promptly. Rehabilitation must begin by March 2025 to align with T5HP’s operational timeline.
The Bank also recommended extending the Asian Infrastructure Investment Bank (AIIB) loan’s closing date, currently June 30, 2025, to cover expenditures beyond the Tunnel 5 intake completion in May 2027. The International Bank for Reconstruction and Development (IBRD) loan has already been extended to September 30, 2027.
Regarding budget constraints, WAPDA had requested Rs42 billion for FY2024-25 but was allocated only Rs11 billion. The World Bank urged the Ministry of Water Resources and EAD to increase the allocation to avoid delays and interest payments on unpaid invoices.
The T5TL transmission line contract, connecting T5HP to the Islamabad West Substation, faces delays due to unresolved right-of-way issues. Only 40 of 170 towers have been erected, prompting the Bank to urge NTDC to expedite work while ensuring compliance with safeguards and the Resettlement Action Plan.
The World Bank’s recent mission, conducted in November 2024, also highlighted the need for extending the T5TL contract timeline, initially set for November 2024, to address ongoing delays and ensure uninterrupted progress on this critical infrastructure project.
Story by Mushtaq Ghumman
