T5HP advancing on schedule: T4HP now fully operational: World Bank

ISLAMABAD: The World Bank has reported satisfactory progress on Pakistan’s Tarbela Fourth Extension Hydropower Project (T4HP), confirming that the project has been successfully completed and is now fully operational, while construction of the Tarbela Fifth Extension Hydropower Project (T5HP) is advancing on schedule toward its planned completion in June 2027.

According to the World Bank’s latest Implementation Status and Results Report (ISR), the overall progress toward achieving the project’s development objective — facilitating a sustainable expansion of Pakistan’s electricity generation capacity — remains rated satisfactory.

Overall implementation progress has also retained a satisfactory rating, although the overall risk rating remains “Substantial.”

READ MORE: Fund reallocation for timely completion sought: World Bank backs govt, Wapda on T5HP extension

The Tarbela Fourth Extension Hydropower Project, approved in March 2012, added 1,410 megawatts (MW) of renewable electricity generation capacity to the national grid. With its completion, cumulative installed capacity at the Tarbela Dam complex has increased to 4,888 MW.

The project forms part of Pakistan’s broader strategy to expand low-cost, renewable energy generation and reduce dependence on thermal power.

Building on this achievement, the Tarbela Fifth Extension Hydropower Project, with a planned capacity of 1,530 MW, is currently under implementation.

The project is financed through a USD390 million loan from the World Bank and a USD300 million loan from the Asian Infrastructure Investment Bank (AIIB).

Construction of both civil works and electro-mechanical components is underway, with completion scheduled for June 2027.

Once T5HP becomes operational, total installed capacity at the Tarbela complex is expected to reach 6,418 MW. Combined, the fourth and fifth extensions will add 2,940 MW of renewable energy capacity under the overall project framework.

The report highlights steady progress across project components. Construction of the T4 powerhouse and intake modifications has reached 100 percent completion.

Civil works for the T5 powerhouse and tunnel connections have reached approximately 52 percent completion, while intake modification works for Tunnel 5 stand at about 47 percent as of December 2025.

In parallel, a 500-kilovolt transmission line designed to evacuate power from Tarbela to the Islamabad West substation is under construction, ensuring effective integration of the additional power into the national grid.

Annual electricity supply from the Tarbela complex increased from a baseline of 14,175 gigawatts-hours (GWh) in 2012 to 18,455 GWh by November 2025. Tarbela Fourth Extension alone contributed 5,163 GWh during the period from January to November 2025. Following completion of T5HP, annual generation is projected to reach 19,000 GWh.

The project also includes social, environmental, and institutional strengthening components. Environmental and social action plans, dam monitoring systems, and capacity-building programs for the Water and Power Development Authority (WAPDA) are being implemented.

Several training programs have been conducted through the Asian Institute of Technology to strengthen technical and institutional capacity.

While preparation studies for pilot floating solar projects at the Tarbela reservoir and Ghazi Barotha complex were completed, the floating solar initiative was ultimately dropped following guidance from Pakistan’s Power Division.

Financially, disbursements remain on track. The original IBRD and IDA loans have been fully disbursed and closed, while more than 71 percent of the additional IBRD financing approved in 2016 has been disbursed as of January 2026.

Copyright Business Recorder, 2026