The Ministry of Water Resources informed the National Assembly that the Neelum-Jhelum hydropower plant has remained non-operational since May 1, 2024, following the collapse of both headrace tunnels, resulting in an estimated Rs33 billion loss due to power non-generation.
Responding to a query from MNA Dr Nafisa Shah during the Question Hour, the ministry stated that preliminary assessments place the repair cost at approximately Rs21.7 billion. This includes the construction of a 2.5-kilometre concrete lining at the collapsed sections and repairs to other damaged areas.Â
However, the cost may change after further technical investigations and recommendations by an independent panel of experts and project consultants.
The ministry explained that the contract for the Neelum-Jhelum Hydropower Project was governed under the Fourth Edition (1987) of the FIDIC Conditions of Contract, with additional amendments. While civil works were designed by project consultants, the Engineered Material Handling (EMH) components were designed by the EMH contractor and subsequently reviewed by the consultants. Both contractors carried out construction under consultant supervision.
Two separate inquiry committees have been constituted—one on May 20, 2024, by the prime minister and another on January 7, 2025—to determine the cause of the collapse and assign responsibility.Â
The committee’s findings are still awaited. Additionally, a consulting firm was engaged to investigate the incident and conducted a site visit between February 1 and 7, 2025.
