ISLAMABAD: The hydel generation capacity of Tarbela dam will further increase to 4,888MW with the completion of 1,410MW 4th Extension Hydropower Project.

Official sources said on Friday that Tarbela dam would be the largest water reservoir in term of hydel generation after completion of the extension project, adding that Mangla had become the largest water storage reservoir.

They said Wapda had already awarded civil works contract worth Rs26.05 billion to the Chinese firm Sinohydro for civil works of the 1,410MW Tarbela project.

Consortium gets $312m contract

The sources said the World Bank had agreed to provide $840 million loan for the project.

They said the project would take three-and-a-half years for commissioning at an estimated cost of $928m.

Prime Minister Nawaz Sharif has already inaugurated the extension project.

On completion, the project will add about 3.84 billion units low-cost electricto the national grid per annum. Annual benefits of the project have been estimated at about Rs30.7bn.

The sources said that the project would pay back its cost in just three years.

They said the project would also be instrumental in saving foreign exchange on import of almost one million ton of furnace oil annually, required for the equivalent generation of electricity from thermal sources.

The project will also provide a cushion to undertake rehabilitation and up-gradation of the existing Tarbela Power House during the lean period.

The Tarbela 4th Extension Hydropower Project is a part of least-cost power generation strategy of the federal government being implemented by Wapda on priority.

This strategy not only aims at adding a sizeable quantum of electricity to the national grid but also improving the share of low-cost hydel electricity in the overall system for reducing the power tariff.

Published in Dawn, July 26th, 2014