Report by Engineering Post
Pakistan has requested the World Bank to provide $ 300 more for 1410 MW Tabela 5th Hydropower Project for meeting its cost escalation requirements.
The requested funding was the second additional financing under the Tarbela 4th extension Hydropower Project, the parent project through which the World Bank was providing financial support for the 1530 MW hydropower expansion project.
Tarbela 5th Hydropower project was in an advanced stage of construction and was reportedly progressing in a satisfactory manner as the commissioning of the power generating units was scheduled for July 2027.
The project was currently being financed through a $390 million World Bank loan and a parallel $ 1090 million loan from the Asian Infrastructure Investment Bank (AIIB) in addition to equity being provided by WAPDA.
The additional funding has been sought following an increase in civil works caused by unusually high inflation higher than originally estimated construction quantities, replacement and rehabilitation of Tunnel 5 gates and interest accumulated during construction.
The project includes the construction of a 1530 MW powerhouse and a raised intake structure on Tunnel 5 of the Tarbela Reservoir. The broader financing package also covers a 500 KV double -circuit transmission line connecting the project switch-yard to the Islamabad West Substation along with interconnection with other generating facilities of the Tarbela complex.
Poject’s hydropower component was being implemented by WAPDA while the transmission infrastructure was being executed by the National Grid Company.
Tarbela 5th Extension Hydropower Project was approved by the Executive Committee of National Economic Council (ECNEC) in December 2016 for its implementation at an estimated cost of Rs82361.000 million including Rupee Cover of 35688.000 million. Against this, estimated expenditure was reported to be R s 79384.230 million by end June 2025.
