Delay in Pakistani hydropower project resuts in cost over-runs

The 969MW Neelum-Jhelum hydropower project has been delayed, resulting in cost over-runs.

Ecnec had approved the project at a total cost of $1,408 million, whereas the revised estimates are about $2,160 million.

Overall cost of integrated project is likely to escalate to over $3 billion including additional cost of construction of 500-kv transmission line by Wapda/NTDC to connect the project to national grid and higher compensation for resettlement of population.

The project, originally due for completion in July 2010, was scheduled to achieve commercial operations by October 2015 as per contractual terms. Now a minimum of another two years' delay is estimated at this stage.

Pakistan Prime Minister Syed Yousuf Raza Gilani emphasised importance of timely completion of 969mw Neelum-Jhelum hydropower project to minimise electricity loadshedding vital to economic development.