Tarbela hydropower project extensions: World Bank reaffirms ‘satisfactory’ progress

ISLAMABAD: The World Bank has reaffirmed satisfactory progress on Pakistan’s Tarbela Fourth Extension Hydropower Project, while confirming that an additional USD 300 million approved in June 2026 will help bridge cost overruns and keep the strategically important 1,530-megawatt Tarbela Fifth Extension Hydropower Project (T5HP) on track for electricity generation from mid-2027, significantly boosting the country’s low-cost renewable power supply.

According to the World Bank’s documents, both the project’s progress toward achieving its development objective and its overall implementation progress have been rated “Satisfactory,” although the overall risk rating remains “Substantial.”

The document noted that the Tarbela Fifth Extension project is being financed through a USD 390 million World Bank loan and a USD 300 million loan from the Asian Infrastructure Investment Bank (AIIB).

READ MORE: World Bank approves additional USD300m financing for T4HP

Civil works and electro-mechanical contracts are currently under implementation, while construction is also underway on a 500-kilovolt transmission line to evacuate electricity from Tarbela to the Islamabad West Substation.

The World Bank said the completed Tarbela Fourth Extension has already added 1,410 MW to Pakistan’s national grid, while the Fifth Extension will contribute another 1,530MW, taking the total renewable generation capacity created under the project to 2,940MW once completed.

The document further showed that installed generation capacity at the Tarbela complex has increased from 3,478MW at the project’s inception to 4,888MW following completion of the Fourth Extension. The figure is projected to rise to 6,418MW after commissioning of the Fifth Extension.

On project implementation, the World Bank said civil works for the Tarbela Fifth powerhouse remain in progress, while intake modifications and electro-mechanical installations are advancing. Three generation units under the Fourth Extension are already operational, whereas work on the switchyard and transmission infrastructure for the Fifth Extension continues according to schedule.

It further highlighted progress in social and environmental initiatives, noting that 27 social development schemes have been completed while another 25 are under implementation. It also stated that women are now being consulted in prioritising community development schemes, with half of the projects reflecting priorities identified by women.

The Bank added that project management, construction supervision and independent monitoring arrangements remain operational, while WAPDA continues to receive technical training under the programme.

Financial data show continued disbursements under various financing windows, with the original World Bank loan fully disbursed, while implementation of the additional financing approved in June 2026 is yet to begin formally. The project’s revised completion timeline extends to September 2029.

Copyright Business Recorder, 2026