Neelum-Jhelum power project set to miss deadline

Published August 4, 2016
Workers and engineers at the Neelum-Jhelum hydropower project site. —AFP/File
Workers and engineers at the Neelum-Jhelum hydropower project site. —AFP/File

LAHORE: The 969MW Neelum-Jhelum hydropower project is set to miss even repeatedly extended deadline of June 2017 and create more troubles for the PML-N government to overcome loadshedding and fulfil its electoral promise of smooth power supplies before next elections in 2018.

The first unit of the project was scheduled to come online by mid-2017, followed by three more units by the end of the year. The project authorities have now informed the Prime Minister Secretariat that the “force majeure activities regarding reinforced concrete linning, grouting and drain repairs may take additional time of four to five months”.

The Ministry of Water and Power on July 27 in its “most immediate fax” message asked Wapda Chairman Zafar Mahmood to “furnish a detailed report on seeking additional time of four to five month, currently identified by the project authorities to the ministry, on “top priority” basis for onward submission to the Prime Minister Office”.

The Prime Minister Delivery Unit (PMDU) had reviewed the progress on July 18 and had a detailed review of steel linning, Jhelum River crossing, tunnel boring machine targets, concrete linning, Rock Filled Dam and overall concrete works, update on power house and financial position.

In their report to the ministry and the PMDU, project authorities later said that the PMDU expressed its concern about the concrete linning of the project and said that at current rate (475 metre per month) of concrete linning, the activity would be extended to Nov 2017. The project authorities, however, assured the PM team that the pace of linning would be enhanced after Aug 2016 when muck work stops.

About the Rock Filled Dam, the PMDU “showed its serious concern regarding progress at the dam earthwork. The PMDU was told that there were “serious seepage and water control issues” within the dam. The project authorities, however, held out an assurance that these issues would be addressed very soon and the pace of work would be speeded up as all construction material is available on the site. Nevertheless, the PMDU expressed its concern that on every presentation, the quantity of material of the dam is changed.

Though the Wapda chairman, while addressing a ceremony at the site on March 30, had declared overcoming all financial hurdles and having finances in place, the PMDU was told that though 83 per cent funds had been spent, the Saudi Fund for Development (SFD) had not released even a single penny out of its signed loan of $100 million.

A consortium of local banks have agreed to provide Rs100 billion Sukuk facility and additional funding of $576m is being arranged by the Exim Bank of China.

These are difficult times for the PML-N government as all its hydle initiatives were in doldrums, claims a former member (water) of Wapda. The Tarbella extension plan, which was supposed to contribute 1,410MW by June next year, has already been in trouble and its acceleration has almost been abandoned.

The first phase of Dasu project is totally uncertain and now the NJHP is seeking additional time of five months. It means that the project would miss the monsoon next year and be online somewhere early 2018, when rivers are already dry and elections fever already on.

Published in Dawn, August 4th, 2016

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