Government to implement $51-million plan for ‘Tarbela project’

ISLAMABAD:

In order to fulfill Prime Minister Nawaz Sharif’s plan to add 1,410 megawatts (MVV) of electricity in the system before the next elections, the government has decided to implement a $51-million plan for the Tarbela ‘fourth extension project’, seven months ahead of its planned completion.

The $51-million spending, according to Water and Power Development Authority (WAPDA), would help generate $300 million worth electricity by speeding up the plan of completion.

The project is expected to be completed by June 2017, ahead of the high water flow season, remarked a Wapda official.

The additional funds will be given by the federal government, or Wapda.

Wapda-which is executing the project-had asked the contractor to finish the project seven months ahead of schedule.

The WB board had approved a mix of concessionary and expensive loan of $840 million to add 1,410MW to the existing generation capacity of the Tarbela hydropower project. After completion, Tarbela’s generation capacity will increase to 4,888MW.

Out of the $840 million loan, the WB has so far provided roughly $143 million, which is 17% of the original cost. However, Wapda said its project was on track, as the cost of the civil contract was $651 million, out of which, $312 million were on account of provision of equipments and machinery.

One of the biggest Germany’s economic champions; Voith Hdyro Company is providing machinery and equipment for the project through its Chinese partners. The Voith is a family owned company since 1867 and its annual sales last year amounted to €5.7 billion.

The Tarbela fourth project showed a saving of $150 million that the WB has indicated to divert for the Tarbela fifth extension project that the government is planning to start from February next year. The initial estimated cost of Tarbela fifth extension is $700 million and may generate up to 1,400MW electricity.

The Austrian ambassador to Pakistan has offered $400 million loan for Tarbela fifth extension, according to the Ministry of Finance. However, the Austrian government wanted the contract for providing machinery and equipments to be awarded to an Austrian firm, Andritz Hydro, according to a Wapda official.