Tarbela 5th Extension Project cost surges to Rs. 316 billion

The estimated cost of Pakistan’s Tarbela 5th Extension Hydropower Project has surged from Rs. 82 billion to approximately Rs. 316–317 billion, representing an increase of over 280 percent. The revised cost was approved by the Executive Committee of the National Economic Council (ECNEC), chaired by Deputy Prime Minister Ishaq Dar.

An independent inquiry into the collapse of a downstream cofferdam attributed the failure to design changes, inadequate supervision, and delayed administrative action. The inquiry held the Water and Power Development Authority (WAPDA), the project contractor, and the engineering consultant responsible, noting that design changes were made after the contract was awarded without meeting technical standards.

The collapse has delayed the 1,530-megawatt project by at least two years, pushing the expected completion date from 2026 to June 2028. Planning Minister Ahsan Iqbal and the Finance Ministry have raised concerns regarding project transparency, management, and the repayment mechanisms for international lenders.