Daily Times

LAHORE: The construction work on Tarbela 5th extension hydropower project on River Indus in Swabi district will start in 2018-19 fiscal year, Daily Times learnt on Monday.

While talking to Daily Times, the official spokesperson of WAPDA, Abid Rana, said that the project would be completed in four years at a cost of Rs.82,361.6 million. “It will have generation capacity of 1,410 megawatts (MW), with its three units each contributing 470MWs. The annual energy generation of the project would be 1,810 Gigawatts hours (GWh). Its benefits are estimated at US$ 134 million per year,” he said, adding, “It is a huge quantum of electricity and will definitely bridge the gap between the demand and supply. This project will also affect the tariffs as at present the overall energy mix has high thermal share and with increase of hydel ratio the tariffs will get stable and it will lead to a decrease in the cost of generation.”

According to an official of the Water and Power Development Authority (WAPDA), the PC-I (planning commission I) of the project had been approved by the Executive Committee of the National Economic Council (ECNEC), in a meeting held in December 2016. Two loan agreements amounting to USD 390 and 300 million have been signed with World Bank and Asian Infrastructure Investment Bank (AIIB), respectively, for the purpose. After completing all formalities, World Bank and AIIB loans became effective from August 11, 2017, whereas the loan closing date for both loans would be June 30, 2022.

The objective of the project is to facilitate a sustainable expansion of Pakistan’s electricity generation capacity without affecting the capacity for irrigation release. The total installed capacity of Tarbela Dam, after completion of the 5th Extension, will rise to 6,298 MW. The project would also benefit in further development of Pakistan’s hydropower potential along the Indus River Cascade which has been a cornerstone of the World Bank Strategy and Pakistan’s energy policy to reduce load-shedding, cost of electricity production, and improve financial sustainability.

Regarding progress of the project, the WAPDA official said the process of procurement and recruitment for consultancy services was underway and a Request for Proposal (RFP) had been issued to shortlisted consultants. The official said technical evaluations of the proposals received so far were being done currently.

Tarbela Dam was completed in 1974. It was designed to store water from Indus River for irrigation, flood control, and the generation of hydroelectric power. Almost 14 power generation units were installed at three tunnels during various stages with a cumulative installed capacity of 3,478MW, whereas the other two tunnels were for irrigation purposes only. The Tarbela 4th extension was made in October 2013 with a cost of $795.8 million and after the success of the project the 5th extension was planned which got approved by the Government of Pakistan.

Published in Daily Times, July 3^rd 2018.