The 969MW Neelum-Jhelum Hydropower Project (NJHPP), constructed at a cost of more than Rs500 billion (approximately $5 billion), is officially expected to remain out of service until March 2028.
969MW Neelum-Jhelum Hydropower Project May Remain Offline for Nearly Four Years, Senate Panel Told
ISLAMABAD: Pakistan’s nearly $5 billion Neelum-Jhelum Hydropower Project (NJHPP) is expected to remain out of operation until at least March 2028, extending its shutdown to nearly four years, The News reported.
The prolonged outage means electricity consumers, who have financed the project for years through the Neelum-Jhelum (NJ) surcharge included in their power bills, will continue to shoulder the financial burden while being deprived of one of the country’s most affordable sources of electricity.
ISLAMABAD: The 969MW Neelum-Jhelum Hydropower Project has remained shut since May 2024 after a rock burst caused severe damage to its headrace tunnel, with repairs now expected to keep the facility offline until at least March 2028.
The timeline was shared during a meeting of the Senate Standing Committee on Water Resources, where Wapda Chairman Lt-Gen (retd) Muhammad Saeed said restoration work on the project was in progress and expressed confidence that electricity generation would resume by March 2028.
Saeed said pre-construction geological studies had identified the area as a seismic zone, while investigations into the tunnel failure were still underway.
The disclosure led senators to call for a detailed probe into possible negligence behind the failure of one of Pakistan’s most costly infrastructure projects. They questioned whether the incident was purely due to geological factors or whether design, construction, or operational shortcomings contributed to the damage.
Lawmakers demanded a transparent investigation and accountability for anyone found responsible.
The project, awarded in July 2007 and completed in August 2018 after nearly a decade of construction, was built at a cost of around Rs500 billion (approximately $4.7 billion based on the exchange rate at the time).
Since its shutdown, the national grid has lost access to a major source of low-cost hydropower, increasing dependence on expensive thermal electricity and adding further pressure on Pakistan’s growing circular debt.
During the meeting, chaired by Senator Jam Saifullah Khan, officials also raised concerns over the country’s worsening water security. Wapda Chairman Saeed stressed the urgent need to increase water storage capacity, while lawmakers pointed out that Pakistan has not constructed a major dam since Tarbela and Mangla, whereas India has developed thousands of dams.
The committee also criticised a briefing by Suparco on satellite monitoring of river encroachments, saying the presentation lacked sufficient details and failed to address members’ concerns.
Officials informed the committee that a draft Dam Safety Council Bill, prepared with support from the Asian Development Bank, had been finalised to create a legal framework for dam safety.
Wapda also briefed lawmakers on the stalled Nai Gaj Dam project, where legal disputes continue after the original contractor allegedly submitted a fake bank guarantee, causing losses of around Rs23 billion. Once completed, the dam is expected to help protect Dadu and Sehwan from floods and provide irrigation to nearly 28,000 acres of land.
Officials further stated that Wapda supplies electricity to the national grid at an average cost of Rs3.83 per unit and produces around 32 billion units of electricity annually.
