Islamabad      -         The cost of Tarbela 4th hydropower project has increased by 47.09 percent from original Rs83.6 billion to Rs123 billion mainly due to delay in completion, increased scope of work and rupee value depreciation.

The source said that the revised PC-I of the project was referred by Central Development Working Party to ECNEC with the increased cost of Rs39.38 billion, official source told The Nation here Sunday.

The Original PC-I of Tarbela 4th hydropower project had expired in January 2017, however the revision in cost and scope of work was carried out without prior approval of CDWP/ ECNEC, said the source. Tarbela 4th project was approved in August 2012 and was due for completion in 2017, however it was delayed and will now be completed next year, said the source. The source said that revised Coordinated Construction Schedule (RCCS) was approved only by WAPDA and implemented without the approval of CDWP/ ECNEC. Full payment was made for raised intake under Variation Order-02 ($ 48 Million). The task was due for completion In June 2017 but is still ongoing.

Tarbella 4th Hydropower project have the installed capacity of 1410 MW with three units of 470 MW each which was done through Modification of Tunnel 3 & 4 intakes and construction of low level outlet gates. The annual Energy capacity is 3,840 GWh.

The source said that Projects objective of 1410 MW has already been achieved while remaining works are related to civil works of raised intake structure and permanent plugging. Almost 98.4 percent of the physical progress on the project has been achieved, said the source.

As per the original PC-I the project was conceived at the total cost of Rs83,601.04 million of which Rs 17,735.67 million (10 percent) was local funded, whereas Rs65,865.37 million(90 percent) was FEC. The FEC was funded by World Bank-IBRD/IDA while the local share was funded by WAPDA from own resources. The Interest during construction of the project will be around Rs31.50 billion, said the source

Source further said that owing to the fact that approval of the revised PC-I was essential to avoid cancelation of World Bank Loan (US$ 125 million) therefore CDWP referred it to ECNEC for approval.

However the source said that since the revision in cost and scope of work was carried out without prior approval of CDWP/ ECNEC therefore as per the Planning commission guideline the project will get an ex-post facto approval. In the PSDP 2019-20 Rs14340.0 million has been allocated for the project. The revised PC-I of the project will now be presented to ECNEC for final approval.