NJ power project far from success despite cost overrun

ISLAMABAD: Despite a cost overrun of more than ten times against its initial estimates, the Neelum-Jhelum Hydropower Project (NJHPP) has proved another classic example in the list of failed projects in Pakistan.

The project witnessed cost and time overrun as its cost has gone up from initial estimates of Rs40-45 billion to over Rs540 billion, but now serious flaws have surfaced and come into the ‘knowledge’ of the planning ministry.

According to an official announcement made on Monday, Federal Minister for Planning Ahsan Iqbal chaired a meeting on the NJHPP to finalise and present recommendations for immediate remedial measures aimed at rehabilitating and operationalising the project at the earliest.

The minister also discussed legal issues with the law secretary and the attorney general for Pakistan (AGP) in order to provide strong legal basis for those who are responsible for the collapse of tunnel. Additionally, the minister emphasised the internal accountability process in connection with poor project management by WAPDA.

During the meeting, officials briefed the minister on the project’s technical issues, stated that while some problems had been identified, accountability was under investigation.

Ahsan Iqbal expressed serious concerns over the delay, highlighting that that had hindered timely investigations and accountability. He remarked, “From the outset, an accountability mechanism should have been in place to monitor progress and assign responsibilities, especially for a project of this scale.”

The minister directed that mega projects, such as the Diamer-Basha Dam, must be free of poor project management like Neelum-Jhelum. He stressed the need for an independent validation of NESPAK’s work by international experts to avoid recurrence of events in future and reformation of NESPAK must be undertaken on priority basis.

Referring to the NJHPP history, Ahsan criticised the decision to launch the project without ensuring its financial closure in 2007. “The project was rushed, without proper planning compromising the long-term viability of the critical national project,” he added.

The meeting concluded with directives to expedite the investigation process and improve the terms of reference (ToRs). The minister also suggested involving international experts as part of the investigative team, led by Shahid Khan, to ensure transparency and accountability. He recommended that the consultant and contractor be given an opportunity to respond to the findings, ensuring that no party could claim they were not given opportunity to clarify their position. “The public has the right to know who is responsible for the delays and financial losses of such a significant project,” the minister added.