Fund reallocation for timely completion sought: World Bank backs govt, Wapda on T5HP extension
In a letter addressed to Secretary Economic Affairs, Dr. Kazim Niaz, World Bank senior official Gailius J. Draugelis commended the hospitality extended by WAPDA and its project teams during the recent visit of the Bank's Executive Directors to the historic Tarbela Dam, the Tarbela Fourth Extension Hydropower Project (T4HP), and T5HP.
Tarbela Dam, the world's largest earth-fill dam, remains a key infrastructure landmark. The T4HP has added 1,410 megawatts (MW) to Pakistan's power grid since its commissioning in 2018, generating over 28,000 GWh of clean electricity and saving the country approximately $3.5 billion in foreign exchange. Additionally, the project has enhanced the long-term sustainability of the dam by protecting critical tunnels from sedimentation for the next 50 years.
World Bank team visits Tarbela 5th extension hydropower project
The Bank expressed satisfaction with the progress of the hydropower component being implemented by WAPDA. It noted that both the Tarbela 5 Project Implementation Consultants (T5PIC) and the contractors—Power Construction Corporation of China (PCCCL) for civil works, and Harbin Electric International/Harbin Electric Company (HEVHEC) for electromechanical (E&M) works—have been performing well.
PCCCL has nearly completed the vertical shaft of the raised intake during this low-flow season and has opened the portal inside Tunnel 5, marking a critical milestone. The next phase involves connecting this portal with the vertical shaft through a connection tunnel. While overall progress on the powerhouse is satisfactory, the World Bank has asked WAPDA to closely monitor construction of the erection/loading bay, which is crucial for the upcoming E&M installations.
The Bank urged WAPDA and T5PIC to ensure that rehabilitation work on the bulkhead and service gates of Tunnel 5 begins no later than August 2025. According to the revised contract schedule, generation units in T5HP are expected to be commissioned by the end of 2026. The Bank emphasized that timely rehabilitation of the service gate is essential for smooth commissioning.
Electromechanical works are also progressing steadily. Installation activities will accelerate once the erection/loading bay is completed.
The Bank has asked WAPDA and T5PIC to (i) monitor the timely delivery of E&M equipment to ensure the majority is on-site by end-2025; and (ii) direct the contractor to finalize the schedule for completing the works at the T4 switchyard, including shifting transmission lines that affect construction of the T5 Transmission Line (T5TL) towers.
The World Bank acknowledged improvements in project oversight, noting that the Project Manager has significantly enhanced construction sequencing and physical progress through timely technical decisions. However, it also advised WAPDA to manage the T5PIC consultancy contract efficiently to ensure sufficient budget for continued supervision by key experts for the duration of the project.
The Bank highlighted the need to reallocate approximately $50 million from the E&M component to the civil works component under both the IBRD and AIIB loans, despite the project having an undisbursed balance of around $299 million. This reallocation is critical to prevent financing constraints in FY2026.
The World Bank reiterated its commitment to supporting WAPDA and the government in completing T5HP. It acknowledged the expected financing gap due to unforeseen geological conditions, gate rehabilitation costs, and price escalations.
Regarding the T5 Transmission Line (T5TL), which connects the T5HP switchyard to the Islamabad West Substation (IWS) and T1–T4 switchyard, the Bank noted that the contract—awarded to Netracon Technologies (Pvt.) Ltd.—is under implementation. The contractor has completed 148 tower foundations and erected 129 towers, and has pledged to deliver all remaining equipment by July 2025.
The Bank urged NTDC, T5PIC, and the contractor to finalize the remaining line route, tower quantities, and foundation designs, particularly near Gawari Sand Quarry and close to the IWS. It also asked NTDC to ensure immediate commencement of conductor stringing and full compliance with the Resettlement Action Plan as foundation and erection works progress.
The Bank emphasized its intent to support Pakistan's long-term transmission expansion through a proposed multi-phase program to boost energy security. With IWS set to receive 1,530 MW from T5HP and 2,160 MW from Dasu Hydropower Stage-I in the coming years, the Bank has advised NTDC to plan the power evacuation accordingly, including evaluating the expansion of the 765kV transmission system to Lahore, Faisalabad, and other major load centres.
The sources said, the issue of reallocation of funds will also be discussed at a meeting between the World Bank and Government's line Ministries on Friday (today).
Copyright Business Recorder, 2025
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