ISLAMABAD, April 14: The 1,450MW Ghazi Barotha Hydropower Project would partially begin operation on May 15 with the testing of its first 290MW unit and its commercial operation would begin on July 16.

The $2.1 billion project would cost 58 paisa per kilowatt-hour to the Water and Power Development Authority and would offset thermal power energy mix, Wapda Chairman Zulfiqar Ali Khan told newsmen during a visit to the site on Monday.

He said the project would not provide any immediate tariff relief to the consumers because it would offset high energy costs the utility was incurring on purchase of thermal power from independent power producers (IPPs).

He said the project was estimated to be fully operational by June next year as a 290MW unit would come on line every three months from July.

Project Director Brig Zareen said the $2.1 billion estimated cost did not include any legal charges and court fees that would accrue due to the contractor of the project going to the International Centre for Settlement of Investment Disputes.

He said the project had been delayed by almost 20 months because of land acquisition problems, the 9/11 events and the donor agencies’ involvement in the development and environment issues.

He said the generation cost at Mangla and Tarbela was eight paisa and 18 paisa per unit, respectively, after recovery of the initial investment, while the Ghazi Barotha project’s production cost would be 58 paisa per unit and it would recover its investment after six years.