From Dasu plant to Mansehra: 765kV project facing serious execution challenges
ISLAMABAD: The 765-kilovolt transmission line project from Dasu Hydropower Plant to Mansehra is facing serious execution challenges, with the contractor alleging that persistent financial, design, right-of-way (ROW) and regulatory clearance issues are disrupting construction and jeopardising timely completion.
In a formal communication to the Managing Director, National Grid Company (NGC), dated November 2, 2026, Sinohydro Corporation Limited has sought immediate intervention to resolve outstanding contractual issues, warning that continued delays in payments, approvals and availability of construction sites are adversely affecting project progress.
The contractor claims that approximately Rs1.494 billion and $146.677 million are outstanding against various invoices, while substantial additional amounts are pending reimbursement, approval of change orders and resolution of contractual disputes.
According to the letter, 17 invoices under Schedule-4 amounting to Rs555.721 million are pending, of which Rs152.989 million are overdue. Another invoice under Schedule-4 worth $146.677 million is also outstanding.
The contractor further identified pending payments relating to customs duties, crop compensation and price adjustments. In particular, Rs272.897 million against price adjustment invoices and Rs154.235 million against customs-duty invoices are reportedly overdue.
The company alleged that several invoices and progress certificates relating to completed and measured works had been returned by the employer or consultant, adversely affecting its cash flow.
One of the major disputes concerns payments for access roads. The contractor rejected a proposed payment mechanism under which access-road payments would be linked to completion of tower foundations, erection and stringing activities.
It maintained that access roads and other construction activities were separate items under the contract and that payment for each item could not be made conditional upon completion of other works.
The contractor alleged that the proposed mechanism was unilateral and contrary to contractual provisions, adding that invoices and progress certificates for completed access roads continued to be returned despite repeated objections.
The company warned that persistent denial of payments could compel it to exercise its contractual rights, including suspension or reduction of work, adding thatconstruction of access roads had continued without suspension or reduction.
The contractor also highlighted delays in reimbursement of crop compensation paid to affected landowners.
According to the letter, the company had been paying compensation for damage to crops in accordance with contractual arrangements but could not obtain reimbursement because the employer had not regularly provided the required compensation vouchers.
An amount of Rs151.711 million was reportedly pending submission for reimbursement, subject to provision of the requisite vouchers.
The company also identified three pending change orders involving tower designs, foundations and terminal towers, arguing that their delayed approval was affecting construction activities.
Change Order No. 07, relating to strengthening of an existing bridge near Tower No. 27, amounts to Rs54.726 million and has reportedly remained pending for more than ten months.
Change Order No. 08, concerning unit pricing for extended pad and chimney solutions covering 71 towers, involves Rs709.909 million and has remained pending for more than eight months.
Change Order No. 11, relating to unit pricing of D7T-type terminal towers required to be imported from China, involves CNY1.346 million and has reportedly remained pending for more than four months.
The contractor maintained that construction at certain locations could not proceed without approval of the relevant change orders.
The letter also raised concerns about design-related issues affecting more than 100 tower locations, stating that contractual tower configurations were insufficient to meet required clearance criteria.
According to Sinohydro, it had proposed incorporating special tower designs during the initial project stage in 2023, but the proposal was not accepted at that time. The employer subsequently acknowledged the need for special tower designs through a communication dated October 9, 2026.
The contractor argued that earlier acceptance of its proposal could have avoided prolonged design-related delays.
It also cited repeated revisions to wet pile foundation designs, revocation of approval for dry pile foundations and unresolved soil investigations at six tower locations due to ROW constraints.
The contractor further alleged that the contractual transmission-line route was not optimal, with significant portions passing through steep and hilly terrain involving slopes exceeding 50 degrees.
It stated that the alignment had not adequately accounted for existing transmission-line crossings, deep valleys and potential impacts on mosques, residential buildings and schools.
Several crossing issues involving existing transmission lines reportedly remained unresolved, including the N46-N47 stretch, which the contractor described as the most critical.
The company also maintained that the original route had not adequately considered future dam developments, including Patan Dam, Thakot-I Dam and Thakot-II Dam, necessitating subsequent route reviews and design modifications.
One of the most serious concerns highlighted in the letter relates to the availability of construction sites.
The contractor stated that ROW constraints and outstanding Forest NOCs were affecting 123 tower locations in Section-I and 65 in Section-II, while another 27 locations were subject to pending NHA NOCs.
Consequently, 215 out of the project’s total 420 tower locations were reportedly affected by ROW or clearance issues.
The company specifically identified the stretch between Tower Nos. 150 and 198, where it claimed that not a single tower location was available for construction due to unresolved ROW issues associated with the Besham Committee.
It argued that the prolonged unavailability of construction sites had disrupted the planned sequence of work, restricted deployment of manpower and machinery and adversely affected project scheduling.
The contractor has requested NGC to immediately intervene in resolving outstanding payments, design approvals, ROW constraints and pending Forest and NHA clearances.
It also warned that continued delays could entitle it to claim an extension of time and associated costs under the contract.
The 765-kV transmission line from Dasu Hydropower Plant to Mansehra is an important infrastructure component intended to evacuate electricity generated by the Dasu Hydropower Project and strengthen Pakistan’s transmission network.
The letter has placed on record the contractor’s concerns regarding financial and execution-related bottlenecks, raising questions about the timely availability of construction fronts and completion of the transmission infrastructure.
Copyright Business Recorder, 2026
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