The World Bank has reaffirmed its support for Pakistan’s green energy ambitions by providing $390 million in financial assistance for the Tarbela 5th Extension Hydropower Project, currently under construction by the Water and Power Development Authority (WAPDA). Once completed, the project will raise Tarbela’s installed capacity to 6,418 MW, further cementing its status as one of the largest hydropower installations in the world.
The development was highlighted during a visit by a high-level three-member World Bank delegation led by Pankaj Gupta, Regional Director for Infrastructure in South Asia. The delegation inspected various construction sites at the 1,530 MW Tarbela 5th Extension, which is being built on Tunnel No. 5 of the Tarbela Dam system.
WAPDA Chairman Engr. Lt. Gen. (Retd) Sajjad Ghani accompanied the delegation and expressed gratitude to the World Bank for its continued partnership in Pakistan’s hydropower development. “Our collaboration with the World Bank spans over six decades, and we look forward to even stronger ties in the years ahead,” he said.
The Tarbela Dam, commissioned in 1976 on the Indus River, is a cornerstone of Pakistan’s power and irrigation infrastructure. Originally designed for irrigation and flood control, the dam evolved into a critical hub for hydropower generation. Its initial installed capacity of 3,478 MW has been progressively expanded with the 4th Extension (completed in 2018 with World Bank assistance) and now the 5th Extension, which aims to enhance clean energy generation and reduce reliance on imported fossil fuels.
The 5th Extension is a flagship initiative under WAPDA’s broader strategy to generate green, clean, and least-cost electricity by maximizing the use of existing infrastructure. It is expected to add 1.347 billion units of hydel electricity to the national grid annually — enough to power millions of homes and significantly ease the country’s energy shortfall.
The World Bank delegation visited several key work sites, including the raised intake, tunnel, penstock, and powerhouse. During the visit, the General Manager/Project Director of the 5th Extension briefed the team on ongoing developments across seven major fronts.
Excavations at the raised intake shaft, penstock, powerhouse, and switchyard have already been completed. Concrete works are progressing at the powerhouse, intake, tailrace culvert, switchyard, and associated canal structures. Installation of the draft tubes for all three generating units — each with a capacity of 510 MW — has been completed, while work on penstock pipe fitting and electromechanical installations is underway.
Electricity generation from the project is scheduled to begin in 2026, marking a major milestone in Pakistan’s journey toward renewable energy expansion and sustainable development.
The Tarbela 5th Extension is one of several projects the government is counting on to meet surging domestic demand and cut the cost of power generation by reducing dependence on expensive imported fuels.
