LAHORE: Wapda has awarded $312 million contract to a consortium for electro-mechanical works of the 1410MW Tarbela fourth extension hydropower project.

The consortium comprises Voith Hydro of Germany and Voith Hydro Shanghai of China, the two renowned companies of the world.

The agreement was signed here at Wapda House by Wapda’s Project Director of Tarbela fourth extension hydropower project and CEOs of the both the international firms.

The contract has been awarded after an approval of the World Bank.

The hydropower project will increase the generation capacity of Tarbela Hydel Power Station from 3478MW to 4,888MW after installation of three units of 1410MW on Tunnel No 4.

On completion, the project will add about 3.84bn units of low-cost electricity to the national grid per annum.

Annual benefits of the project have been estimated at about Rs30.7bn.

The project will recover its cost in three years.

The project will save the foreign exchange spent on import of one million tonnes of furnace oil annually.

Civil works of the project have already got under way.

The project is scheduled to be completed in three-and-a-half years with $928 million.

The World Bank is providing $840 million for the project.

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