Delay in Tarbela dam's fifth extension project leads to $1.5 million interest deduction
Tarbela Dam - File photo
A deduction of $1.5 million in interest has been revealed due to delays in the Tarbela Fifth Extension Project.
According to Express News, a meeting of the Senate Economic Affairs Committee, chaired by Senator Saifullah Abro, was held. During the meeting, a briefing was provided on the Tarbela Fifth Extension Hydropower Project.
The project director stated that the project is expected to generate 1,530 MW of electricity. He explained that IRSA (Indus River System Authority) took considerable time to issue the NOC in 2021, as there were concerns regarding the fifth tunnel at Tarbela, which only receives water for 90 days a year.
He added that IRSA's concern was that if the fifth tunnel remained closed for five years, the country would face water issues. Provinces were initially unwilling to bear the shortage of water, but now all provinces have agreed.
So far, $174 million has been spent on the World Bank-backed project, with the civil works estimated at $354 million. The transmission line is expected to cost $40 million, and the total project cost is valued at $807 million.
Of this, $690 million is funded by the World Bank and other international donors. The project was originally supposed to start in 2017 and be completed in five years, but the deadline has now been extended to September 2027.
However, the project is expected to be completed by 2026.
The project director further disclosed that due to the delays, a $1.5 million deduction has already been made in interest payments.
Senator Kamil Ali Agha, a member of the committee, stated that the delays have resulted in additional interest costs.
He stressed that this is public money, not anyone’s personal funds, and those responsible for the delays should be held accountable and punished.
The project director responded by stating that without IRSA's recommendation, they could not release even a drop of water from the Tarbela Dam, nor could they close the tunnel without IRSA’s approval.