Neelum-Jhelum hydropower project to remain shut until March 2028

Senate Standing Committee on Water Resources was told that Pakistan's 969-megawatt Neelum-Jhelum Hydropower Project will remain out of operation until at least March 2028, extending its shutdown to nearly four years after a rock burst damaged its underground tunnel system, The News reported. 

The update was shared by Wapda Chairman Lt-Gen (retd) Muhammad Saeed during a meeting of the Standing Committee, chaired by Senator Jam Saifullah Khan. He said repair work is in progress and expressed confidence that the project would resume operations by March 2028.

The hydropower plant has remained offline since May 2024, forcing the national grid to rely more heavily on expensive thermal power generation despite consumers continuing to pay the Neelum-Jhelum (NJ) surcharge through electricity bills.

Muhammad Saeed told the committee that geological studies conducted before construction had identified the area as a seismic zone, while investigations into the tunnel failure are still underway.

Lawmakers, however, demanded a transparent inquiry to determine whether the damage resulted solely from geological conditions or from design, construction or operational shortcomings. They said any negligence should be investigated and those responsible held accountable.

Awarded in July 2007 and commissioned in August 2018, the project cost around Rs500 billion (approximately $4.7 billion at the then exchange rate).

During the meeting, lawmakers also raised concerns over Pakistan's growing water insecurity. 

The Wapda chairman stressed the need to expand water storage infrastructure, while committee members noted that Pakistan has not constructed a major dam since Tarbela and Mangla, compared with around 5,000 dams built by India.

The committee was informed that a Dam Safety Council Bill, prepared with assistance from the Asian Development Bank, has been finalised to establish a legal framework for dam safety.

Wapda also briefed lawmakers on the stalled Nai Gaj Dam project, where litigation continues after the original contractor allegedly submitted a fake bank guarantee, causing losses of about Rs23 billion. Once completed, the dam is expected to protect Dadu and Sehwan from flooding and irrigate nearly 28,000 acres of land.

Officials further informed the committee that Wapda supplies electricity to the national grid at an average cost of Rs3.83 per unit and generates around 32 billion units of electricity annually.