Tarbela 5th Extension Hydro Power Project: World Bank to grant $ 390 million in project funding

Report by Engineering Post

The World Bank has quite appreciably reaffirmed its support for Pakistan’s green energy ambitions with a commitment to $ 390 million in financial assistance for Tarbela 5th Extension Hydropower Project which was under construction by WAPDA. On its completion of the 5th Extension, Tarbela Dam’s installed capacity will be raised to 6419 MW thereby further cementing its status as one of the largest hydropower installations in the world.

The 1530 MW Tarbela 5th Extension Hydropower Project was under construction on Tunnel 5 of the Tarbela Dam system. Tarbela 5th Extension Hydropower Project was approved by the Executive Committee of the National Economic Council (ECNEC) in December 2018 at an estimated cost of Rs 82361.600 million including foreign aid of Rs 35988.000 million. Against this , only Rs 1047.380 million were reported to have been expended on the project till end June 2024 .Under the Public Sector Development Program v (PSDP) of the Federal Government the project was allocated Rs 11144.929 million including foreign aid of Rs 7212.929 million for its continued implementation during the current financial year 2024-25. Electricity generation from Tarbela 5th Extension Project is scheduled to commence in 2026 marking a major milestone in the country’s journey towards renewable energy expansion and sustainable development if all goes well.

The Tarbela Dam, which was commissioned in 1976 on the mighty Indus River was the cornerstone of Pakistan’s power and irrigation infrastructure. Originally, Tarbela Dam was designed for irrigation and flood control but with the passage of time it has been evolved into a critical hub for hydropower generation.

Its initial installed capacity of 3478 MW has progressively expanded with the 4th Extension commissioned in 2018 with World Bank’s assistance and now the 5th Extension, which aims to enhance clean energy generation and to reduce reliance on imported fossil fuels.