BY MONEM FAROOQI
The delay in completion of the crucial Tarbela Dam 4th Extension Hydropower Project may discredit the ruling Pakistan Muslim League-Nawaz of its efforts on the energy front when the country goes to polls in 2018, since this hitch has already thrown another 1410 MW power plant on Tunnel 5 – which developed complications with its components – behind the schedule.
Sources told Pakistan Today that the delay in completion of the project had triggered a delay in the reduction in the overall production cost of energy by 2.4 per cent from Rs7.02 to 6.85 per kWh.
They said it had also scaled nine components up before going for another power plant on Terbela Tunnel number 5 with the already existing infrastructure, which could have been developed at a rapid pace to meet the ongoing power shortage in Pakistan.
The original cost of tunnel 5 project was USD823.50 million, which was being used for irrigation at the moment.
Besides, one additional subcomponent for construction of the transmission line–component B3 have been added which is to be implemented by National Transmission and Dispatch Company (NTDC). They said that the loan closing date of the parent project (T4HP) extended for completion of all works and warranty and defect liability period.
They said that International Bank for Reconstruction and Development (IBRD) could only disbursed 35 percent till yet whereas International Development Association (IDA) has cancelled USD 115 million and could able to disburse 40 percent following the delay of T4HP. The disbursement was less than the original projections due to more time taken in award of the contracts.
They said that delay in T4PH would be leading to scale-up in changing the project key performance indicators (KPIs) and costs besides the change in Results Framework including Disbursement Arrangements, Disbursement Estimates, Components and Cost, Institutional Arrangements, Financial Management, Implementation Schedule, Legal Covenants and Loan Closing Date.
Sources say, the key changes in the results framework and KPI targets include an increase in the electricity supply from about 3,000 GWh from T4HP to 4,800 GWh T5HP for total annual supply of 19,000 GWh from Tarbela; availability of additional generation capacity during summer months from 1,410 MW to 2,820 MW for a total installed capacity of 6,298 MW at Tarbela.
They said government would ensure that Central Power Purchasing Agency (CPPA), responsible for purchase of electricity from WAPDA, shall maintain a balance in an escrow account equivalent to a period of billing by WAPDA.
WAPDA will also open a new segregated designated account to receive the funds from the bank.
T5HP will add 1,410 MW to an existing tunnel number 5 of Tarbela Dam on Indus River, presently being used to release water for irrigation only when the reservoir level is below the minimum spillway operating level and water releases from the existing power units is not adequate. With power house installed it would continue to carry out the same function and in addition water released from spillway would be diverted through Tunnel 5 to generate 1,800 GWh. This would maximize use of the existing facilities and serve the critically needed power for the country. The pilot project to float a solar power plant under the AF in the reservoir area would help expand in future over the rest of the area leading to a capacity of about 5,000 MW.
Asian Infrastructure Investment Bank (AIIB) would co-finance US$300 million for T5HP. AIIB funds would be used to fund Component A works and Component B1 and B2 electro-mechanical equipment for the hydropower plant for T5HP.