LAHORE: Wapda is expecting to sign a consultancy agreement for the Rs80 billion Tarbela 5th extension project in the next several weeks once the World Bank issues it the No Objection Letter (NOL), senior officials told Dawn here on Saturday.

“Five firms had submitted their bids for the contract and the lowest responsive bid has been accepted and sent to the World Bank for issuance of NOL. We expect the civil works on the project to start some time during this year,” an official said. He refused to give the name of the selected firm, saying it could not be made public unless the bank gave its consent.

The Tarbela 5th extension project can be completed in four years and its completion is estimated to generate additional revenues of $200 million a year for Wapda. The project will be financed by loans of $390 million from the World Bank and $300 million from the Asian Infrastructure Investment Bank (AIIB).

“After the success of Tarbela 4th Extension project, the World Bank is now pushing ahead with the next phase of its renewable energy plans for Pakistan or Tarbela 5th Extension. By using Tarbela 4 as a benchmark, the bank is confident that Tarbela 5 can also be put into operation in four years,” the official said, requesting anonymity because he is not authorised to give public statement.

A World Bank mission led by Dr Rikard Lidenhad had recently concluded its meetings with Wapda management. The mission, according to the official, had described Tarbela 4, which will add 3,000 GWh of electricity worth $350 million to the national grid every year as one of the rare projects completed on time and below cost.

Globally, the official said, hydropower averages around 90 per cent cost overruns and 70 per cent project duration delay. “Tarbela 4 has encouraged international donors like AIIB to finance such projects in future,” the official said.

In the AIIB annual infrastructure report for 2019, the bank has reaffirmed its commitment for the upcoming Tarbela 5 project and its head of communications is quoted to have said that the bank’s focus will remain on projects that can be carried out on a sound economic basis and contribute towards Pakistan’s long-term economic development.

The completion of Tarbela 5 will increase the generation capacity of Tarbela from 4,888 megawatts to 6,298 megawatts, ranking it among the top 10 hydropower stations of the world. It would also significantly enhance Wapda’s financial capability, allowing it to invest the significant proceeds from Tarbela 4 and 5 towards the expansion of the Indus cascade, the officials hope.

Published in Dawn, March 17th, 2019