The restoration of the Neelum-Jhelum Hydropower Project (NJHPC) is expected to take an additional two years to complete, Water Resources Minister Muhammad Moeen informed the National Assembly. A committee investigating the project’s issues is nearing the finalisation of its report.
During the Question Hour, the minister revealed that the main contract for repair work, following the plant’s shutdown in May 2024, has not yet been awarded in line with government directives. So far, Rs6.6 billion has been spent on fixing the Tail Race Tunnel (TRT). After this repair, the plant resumed full operations in March 2024, producing 969 megawatts. However, it had to be shut down again two months later due to problems in the Head Race Tunnel (HRT).
The project currently operates under a provisional tariff on a ‘take-and-pay’ basis, with no fixed payments or investment returns. Expenses are being managed through the company’s own resources and pending payments from electricity sales to the Central Power Purchasing Agency (CPPA-G).
Minister Moeen also assured the house that the National Power Control Centre (NPCC) confirms sufficient power generation capacity to meet demand, with no load-shedding caused by the project’s shutdown. Local electricity supply remains unaffected.
The project’s consultants have been instructed to review and improve maintenance protocols to prevent future disruptions. The minister emphasised strict adherence to equipment manufacturers’ guidelines to ensure smooth and continuous operation.
