Govt to repair Neelum-Jhelum tunnel at Rs23bn, plant offline for eight more months

The government has approved a Rs23 billion repair plan for the damaged portion of the Headrace Tunnel (HRT) at the Neelum-Jhelum Hydropower Project (NJHP), with work expected to keep the 969-megawatt plant offline for another eight months. 

The decision was taken following a review meeting chaired by Planning Minister Ahsan Iqbal on the prime minister’s directive.

International consultant James Stevenson informed the meeting that a full reconstruction of the 48km-long tunnel would cost more than Rs222 billion and could take years. 

However, the identified faults, located between kilometre 13 and 16 within the tunnel, are reachable through horizontal access points (adits). The plan involves reinforcing the damaged section with concrete lining, which Stevenson endorsed as a cost-effective and technically viable solution.

Officials warned that the prolonged shutdown of the NJHP, which went offline on May 2, is expected to result in an annual revenue loss of over Rs55 billion, with additional indirect losses potentially reaching up to Rs150 billion due to reliance on costly replacement fuel. 

Previously, the project generated over 50 billion units of fuel-free electricity each year.

In 2022, the NJHP was similarly closed for repairs to its 3.5-kilometer Tailrace Tunnel (TRT), which cost Rs6 billion and took 13 months to repair, with an additional Rs37 billion lost in halted energy production. 

The plant resumed full capacity in March 2023, only to experience further issues in its HRT within weeks, leading to a drop in output to 400MW and a subsequent shutdown.