Pakistan’s Neelum-Jhelum Hydropower Project, one of the country’s largest energy infrastructure investments, is expected to remain out of operation until at least March 2028, extending its shutdown to nearly four years following major tunnel damage.
Read More: Neelum–Jhelum Hydropower Project –
The update was shared during a meeting of the Senate Standing Committee on Water Resources, where Wapda Chairman Lt Gen (retd) Muhammad Saeed informed lawmakers that repair work on the 969-megawatt hydropower facility is progressing. He expressed confidence that the project would resume electricity generation by March 2028.
The project has remained offline since May 2024 after a rock burst caused extensive damage to its headrace tunnel. Officials told the committee that geological studies conducted before construction had identified the area as seismically active, while investigations into the tunnel failure are still ongoing.
Members of the Senate committee called for a transparent inquiry to determine whether the damage resulted solely from geological factors or if any design, construction or operational shortcomings contributed to the incident. Lawmakers stressed that any negligence should be thoroughly investigated and those found responsible should be held accountable.
Constructed at an estimated cost of nearly $5 billion, the Neelum-Jhelum Hydropower Project was awarded in 2007 and became operational in 2018. Its prolonged closure has deprived the national grid of one of Pakistan’s lowest-cost electricity sources, increasing dependence on more expensive thermal power generation and adding pressure to the country’s circular debt.
During the meeting, Wapda officials also highlighted Pakistan’s growing water security challenges and emphasized the need to expand national water storage capacity. The committee was informed that a draft Dam Safety Council Bill has been finalized to establish a legal framework for dam safety across the country.
Read More: Neelum–Jhelum hydropower project set to start operations
Lawmakers also received updates on the delayed Nai Gaj Dam project and reviewed Wapda’s broader hydropower operations, with officials stating that the authority currently supplies electricity to the national grid at an average cost of Rs3.83 per unit while generating approximately 32 billion units annually.