Neelum-Jhelum hydropower setback: Restoration delayed by two more years

Water Resources Minister Muhammad Moeen informed the National Assembly that the restoration of the Neelum-Jhelum Hydropower Project (NJHPC) is now projected to take an extra two years to finish. The project, which had been shut down in May 2024 due to technical issues, is currently being investigated by a committee that is nearing the finalization of its report.

So far, Rs6.6 billion has been spent on repairing the Tail Race Tunnel (TRT), with the plant resuming full operations in March 2024, generating 969 megawatts. However, two months later, the plant had to be shut down again due to faults in the Head Race Tunnel (HRT). Minister Moeen clarified that the main contract for the required repairs has not been awarded yet, in accordance with government directives.

The hydropower project continues to operate on a provisional tariff based on a ‘take-and-pay’ model, which means it does not receive fixed payments or investment returns. Expenses are being covered using the company’s own resources, with additional funds expected from pending payments for electricity sold to the Central Power Purchasing Agency (CPPA-G).

Despite the setbacks, the Minister assured the National Assembly that the National Power Control Centre (NPCC) has confirmed that there is enough power generation capacity to meet the country’s demand, and local electricity supply has not been impacted by the shutdown of the Neelum-Jhelum plant.

The Minister also highlighted that the project’s consultants have been instructed to review and enhance maintenance protocols to prevent any future disruptions, ensuring strict compliance with equipment manufacturers’ guidelines for uninterrupted operation.