Doubts over meeting repair cost cloud PoK hydel project: Reports

Nov 21, 2022

Muzaffarabad [Pakistan], November 21 : The Neelum-Jhelum hydropower project remains susenpended since July 6 over fears of huge costs for running repairs on it. While the business losses from its closure have been estimated at about 20 billion Pakistan rupees, there are questions on who will bear these losses, the Dawn reported.
The dam was closed after a blockage was detected in the 3.5-km Tail Race Tunnel. The total cost of its repair is estimated to come to about 2.5 billion Pakistani rupees.
The date for resumption of the hydropower project is now likely to be pegged back to February 2023.
On who woud bear the losses, the National Insurance Company Limited or the government, a senior officer at NJHPCL issued a statment to The News International saying only 7 per cent of the share of losses will be borne by the NICL while a consortium of Chinese companies will bear the remaining 93 per cent.
The NJHPCL has been paying 1 billion in Pakistani currency to NICL and about Rs 4 billion have been paid until now, an official said, adding that a maintenance and inspection vehicle has been purchased to complete the tunnel as soon as possible and reduce the projected losses, The News International reported.
On July 4 this year, a huge leakage was observed in the tunnel. However, it was brought under control through drainage pumps.
However, a fresh leakage was seen the next day and it was said that the leakage was because of a blockage which created huge pressure in the TRT tunnel. Finally, the whole powerhouse was shut down on July 6, 2022.
Major construction involving about 58kms of tunnels was done by Chinese contractor CGGC-CMEC (Gezhouba Group), which was hired in December, 2007.
In July this year, people in Gilgit Baltistan took to the streets against prolonged load shedding and water scarcity in the area, amid scorching heat.