ISLAMABAD: The Central Development Working Party (CDWP) on Thursday strongly criticised the Water and Power Development Authority (Wapda) over poor project management, weak oversight, lack of transparency, and massive cost escalations in two major hydropower projects — the Diamer-Bhasha Dam and Tarbela 5th Extension (T5) projects — collectively valued at over Rs802 billion.
During the meeting, Planning Minister Ahsan Iqbal and the Planning Commission’s technical team expressed serious concern over the failure to submit revised feasibility studies and updated cost estimates for more than six years.
The CDWP also demanded immediate sharing of inquiry reports related to alleged mismanagement and corruption in the projects.
In a strongly worded statement, the Planning Commission said the revised Tarbela 5th Extension Project, now estimated at Rs316.4bn against its original Rs82bn cost, had been referred to the Executive Committee of the National Economic Council (Ecnec) for further consideration.
While reviewing the project, the planning minister questioned the project’s management, transparency, and oversight mechanisms, stating that the professional capability of the concerned staff appeared questionable. He also raised concerns over the appointment of a local consultant with a reportedly dubious track record after the replacement of an international consultant through what he described as a non-transparent process.
Mr Iqbal noted that project expenditures had already exceeded Rs140bn and directed that all concerns regarding weak due diligence, contractor performance, and consultant responsibilities be formally presented before Ecnec. He further instructed the inquiry committee to submit a comprehensive report on the matter.
The Planning Commission’s technical team informed the meeting that an inquiry into the collapse of the downstream cofferdam at the Tarbela 5th Extension Project concluded that the failure was not caused by flooding. Instead, it was attributed to a design change from roller-compacted concrete (RCC) to a rock-fill dam, inadequate supervision, and delayed administrative decisions, resulting in structural failure, project delays, and financial losses.
Officials also informed the meeting that the project appeared financially non-viable, with an estimated levelised generation cost of Rs28 per kilowatt-hour, requiring further justification.
The Ministry of Finance sought explanations for the 282 per cent increase in project cost and requested details regarding the repayment mechanism for financing obtained from international financial institutions (IFIs).
The planning minister also expressed dissatisfaction over the continued delay in submission of the revised PC-I for the Diamer-Bhasha Dam project, stating that the project’s cost had risen significantly from its original estimate due to poor project management.
He directed the newly appointed Wapda chairman to ensure professional management and strict accountability in all ongoing projects, adding that his concerns should be officially recorded.
Meanwhile, the CDWP approved the revised PC-I for the purchase of helicopters worth Rs25bn on security grounds, while directing authorities to submit the revised PC-I for the dam component without further delay.
Story by Khaleeq Kiani
