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WAPDA upbeat Tarbela 5th extension project to go online on time

By Munawar Hasan
March 13, 2019

LAHORE: Despite challenges, Water & Power Development Authority (WAPDA) and lenders anticipate the completion of Tarbela 5th Extension Hydropower Project (T5HP) within stipulated period of four years, The News has learnt.

The optimism in this regard in official circles has primarily been on the back of successful execution of Tarbela 4th Hydropower project, which was established by WAPDA with the financial assistance of World Bank.

It is envisaged that the low-cost Tarbela 5th Extension is likely to be operational by the year of 2023-24.

With the construction of Tarbela 4th Extension Hydropower Project having a capacity of 1410MW, it is learnt that World Bank is pushing ahead with its plan for starting the next phase of its renewable energy plans for Pakistan, namely Tarbela 5th Extension Hydropower Project.

By using Tarbela 4th as a benchmark, World Bank is confident that Tarbela 5th Extension can also be “put into operation in 4 years”, generating $200 million worth of additional revenue annually.

Such optimistic view has been drawn from the recently concluded meeting with Pakistan Mission of World Bank, which was attended by WAPDA management, Dr Rikard Liden, World Bank’s team leader, and Masood Ahmad, advisor to World Bank on hydropower.

During the parleys, the World Bank team acknowledged the role of WAPDA and other stakeholders, concluding that: “Tarbela 4th Extension was one of the rare projects completed on time and below cost.

It will add 3,000 GWh of electricity annually worth about $350 million in value and saving of foreign exchange”.

This praise is being considered an especially important observation as global statistics for hydropower average around 90 percent cost overrun and 70 percent project duration delay.

The success of Tarbela 4th Extension Hydropower Project has not only boosted the confidence of World Bank, but it has augured well for other international donors including Asia Infrastructure Investment Bank (AIIB).

In its Annual Infrastructure Report for 2019, AIIB reaffirmed its commitment for the upcoming Tarbela 5th Extension Hydropower Project, after its head of communications said, “our

focus will remain on projects that can be carried out on a sound economic basis and contribute towards Pakistan’s long-term economic development”.

Despite such acclaim and success for mega donor-funded projects in Pakistan, serious challenges still lie ahead, insiders observed. The recent interference by some quarters on projects like Tarbela-4 is complicating matters for the incumbent Government and also frustrating donors.

The stark contrast on how such projects are viewed locally compared to their assessment by international agencies suggests an urgent need for capacity building of local public sector institutions.

This exercise is necessary to enable them for developing context and equip them with necessary assessment tools and know-how to understand and evaluate the large-scale infrastructure development.

In the absence of such capacity, it is believed, the departments are unable to perform, inevitably causing delay in the disbursement of much-needed funds, leading to avoidable losses to the national exchequer and jeopardising the reputation of projects and all the stakeholders in the process.

With completion of T5HP, the power generation capacity of Tarbela Dam will increase from 4,888 MW to 6,298 MW, making it amongst the top 10 hydropower stations of the world.

It would also significantly enhance WAPDA’s financial capability, allowing it to invest the significant proceeds from Tarbela-4 and 5 towards the expansion of the Indus cascade.

As per project components, the T5HP intends to utilise the existing 5th tunnel for power generation. It would lead to scaling-up of power generation capacity by adding 1,410 MW to an existing tunnel number 5 (T5) of Tarbela Dam on Indus River, which is presently being used to release water for irrigation.

The resultant power generation would maximise the use of the existing infrastructure and provide the critically needed power for the country.

It will generate approximately additional 1,800 GWh of electricity utilising the same water flows at a very low cost compared to alternative generation from thermal or other hydropower projects because all other infrastructure such as dam and tunnel are already constructed.

The power generation facilities at T5HP including intake, powerhouse, tailrace, and switchyard will be implemented by WAPDA, whereas power evacuation facilities including transmission line and grid station will be implemented by National Transmission & Despatch Company (NTDC).

Another important advantage in development of T5HP is that power generation part of the project will be free of resettlement and litigation problems.

The environmental and social issues are relatively minor, since most of the infrastructure is already in place.