WAPDA Chairman Lt. Gen. Muhammad Saeed (ret.) on Friday informed the Senate Standing Committee on Water Resources that the nearly $5 billion Neelum-Jhelum Hydropower Project will remain offline until at least March 2028, as it is still undergoing repairs for damages incurred in May 2024.
The 969MW project went offline in May 2024 after a rock burst severely damaged its headrace tunnel. Saeed noted that geological studies conducted before construction had identified the area as a seismic zone, and inquiries into the tunnel failure were ongoing.
During the briefing, the senators questioned whether the damage resulted solely from geological conditions or whether design, construction or operational lapses also played a role. They insisted that any negligence must be investigated transparently and those responsible held accountable, noting Pakistani citizens had funded the project through a surcharge in electricity bills that spanned years.
The Neelum-Jhelum project was awarded in July 2007 and commissioned in August 2018 after nearly a decade of construction, costing around Rs. 500 billion. Its loss since 2024 has forced the country to rely on costlier power generation, raising already inflated power bills.
According to Saeed, the project—despite its prolonged suspension—is successful and had already recovered about 80% of its cost through the supply of cheaper electricity prior to the fault.
The WAPDA chairman also informed the meeting of Pakistan’s worsening water insecurity, stressing on the need to expand water storage infrastructure. Lawmakers noted that Pakistan has not built a major dam since Tarbela and Mangla, while neighboring India has constructed around 5,000 dams in the same period.
The committee was informed that groundwater levels continued to decline in several Punjab districts, including Okara, Vehari, Sahiwal, Multan and Lahore. The panel called for adopting international best practices for groundwater conservation, efficient irrigation techniques and sustainable water management to improve agricultural productivity while protecting water resources.
During Friday’s meeting, lawmakers also criticized a briefing by SUPARCO on satellite monitoring of river encroachments, saying the presentation lacked clarity and failed to satisfy questions.
WAPDA also briefed the committee on the stalled Nai Gaj Dam project, where litigation continues after the original contractor allegedly submitted a fake bank guarantee, resulting in losses of about Rs. 23 billion. Once completed, the dam is expected to protect Dadu and Sehwan from flooding and irrigate nearly 28,000 acres.
During the briefing, WAPDA told the committee it was supplying electricity to the national grid at an average cost of Rs. 3.83/unit and generated about 32 billion units of electricity annually.