A MAJOR factor contributing to the widening electricity demand-supply gap has been the delay in the completion of various hydropower projects undertaken by the Water and Power Development Authority. The current political turmoil will also have its share in future delays.

These sustainable development projects, of a cumulative installed capacity of 1,236MW, if completed timely, could directly address the prevalent energy crisis and also result in reducing the average generation cost of the energy mix. The projects have suffered inordinate delays of three to seven years, primarily due to poor planning, ineffective monitoring, lack of transparency, absence of political will, uncertain law and order situation, financial constraints etc..

A typical example is that of the ongoing Neelum-Jhelum hydroelectric project of 969MW, which, on completion, would generate 5.15bn units of electricity annually, but remains much behind schedule.

Though the strategic project was conceived decades ago for fast-track implementation, the construction contract was awarded only in July 2007. It was to achieve commercial operations within five years, but the completion date was revised a number of times due to changes in design, amended scope of supply, an after-thought procurement of tunnel-boring machines, financial constraints and other factors. This has limited the physical progress to about 63pc so far. Project is now scheduled for commissioning in November 2017.

Poor planning, ineffective monitoring, lack of transparency, absence of political will, uncertain law and order situation and financial constraints are responsible for the delayed power projects

Generation of the first unit of 242MW is planned for December 2015, but is not likely to be achieved due to the slow pace of work.

Ironically, the contract for the laying of a 500-kV transmission line for the dispersal of power generated from the project has not yet been finally awarded. The Economic Coordination Committee of the Cabinet approved financing of Rs17bn for the purpose only two weeks back (on August 15), adding to the delay and cost overrun.

It is apathetic that the consumers have paid over Rs31bn, and continue to doing so towards half of local equity in the project, since the government imposed a surcharge of 10 paisas per unit in the power tariff. The project’s cost seems to be uncontrollable for the managers, as it has escalated from Rs84bn to Rs 275bn. This, again, is not final, and projected to rise further, given the conditions.

Similarly, the Golen Gol project of 106MW was scheduled for commissioning in 2009, but has been delayed. Though civil works has been in progress for some time, the contract for electro-mechanical (E&M) works was re-awarded this January due to controversy regarding bidders and legal issues. If things move according to the revised plan, it will be completed in 2017, with a 25pc cost escalation so far. On completion, the project would generate 436m units of energy annually.

The Keyal Khwar hydropower project of 122MW has already been delayed by seven years, as the contract for civil works was given in January this year, while the tender for E&M works was opened recently. Gomal Zam Dam, having a 17MW powerhouse, has recently been completed after eight years, after construction started in 2006. But the main reason for the long delay was the poor security situation in the area.

It is ironic that even the process of land acquisition for the Diamer-Basha Dam of 4,500MW has still not been finalised, whereas its ground-breaking ceremony was held in January 2006. Reportedly, the project would now achieve commercial operation in 2037.

The turnkey contract for rehabilitation of Jabban (19.6 MW) — the oldest hydropower station, commissioned in 1938 and which ceased operations in 2006 due to a fire accident — was given in February 2010 with a 21-month completion period. However, physical work began in May 2011.

The rehabilitated and upgraded 22MW powerhouse has not been connected to the national grid as yet, resulting in an annual loss of 122m units of electricity. The first of the four generating units was put on a trial run on June 26, 2013, and the project was to be commissioned by last September.

The status of small projects is equally unsatisfactory. Wapda has planned to construct a series of small and mini hydropower stations in regions that are not connected to the national grid. In the first phase, 12 small dams with a total installed capacity of over 43MW were to be constructed in all four provinces during 2005 and 2006 at a cost of Rs 30bn, to be completed in three years.

Sadly, only one project — Darawat Dam in Sindh — is nearing completion, while a number of others have run into snags even before take-off. All these projects are now rescheduled for implementation in 2015.

Hydropower projects that suffered long delays in the recent past include Jinnah, Duber Khwar, Allai Khwar, Khan Khwar and Satpara, with a cumulative installed capacity of 428MW. The Jinnah project of 96MW in Mianwali district was planned for construction in 2006, with a completion deadline of four years, but it was commissioned in September 2013.

The contracts for Duber Khwar (130MW), Allai Khwar (121MW) and Khan Khwar (72MW) — all located in Kohistan, KP — were awarded in June 2003, but their commissioning was delayed by four years. Obviously, the long delays caused exorbitant rises in the project costs.

Nonetheless, it is worth mentioning that, utilising a total power generation capacity of 6,480MW, Wapda provided a record plus 31bn units of electricity to the national grid during 2013-14, and that too at a very low average rate of Rs 1.50 per unit.

The writer is a former chairman of the State Engineering Corporation

Published in Dawn, Economic & Business, September 1st, 2014