Islamabad – Pakistan – The Neelum–Jhelum Hydropower Project, once hailed as a milestone for the country’s energy sector, has turned into a glaring example of failed planning, mismanagement, and unchecked cost overruns.
Originally proposed in the late 1980s with an estimated budget of around Rs 15 billion, the project’s final expenditure ballooned to over Rs 500 billion, taking decades to complete while delivering far less than promised.
A recent audit exposed deep flaws in execution, including poor design, weak risk management, absence of third-party validation, and repeated construction errors. Reported financial losses included Rs 70 billion from inadequate oversight, Rs 20 billion from earlier tunnel collapses, and recurring operational shutdowns costing billions more.
Technical faults have further plagued the project. Tunnel cracks and rock bursts forced prolonged closures, with losses estimated between Rs 37 billion and Rs 55 billion due to power generation disruptions. A major collapse in 2022 intensified the crisis, with repair estimates ranging from Rs 20 billion for short-term fixes to as high as Rs 300 billion for full tunnel reconstruction.
In response, the government has launched an inquiry commission comprising retired judges and technical experts to scrutinize the project’s failures. The investigation will focus on flawed surveys, faulty designs, and decision-making gaps, with a mandate to identify those responsible for the massive financial and operational losses.
This story has been reported by PakTribune. All rights reserved.