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Attabad Lake, Harpo and Hanzel hydropower projects: PM forms SC to monitor progress, ensure timely execution

Published September 6, 2025 Updated September 6, 2025 05:53am

4 min

By Mushtaq Ghumman

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ISLAMABAD: Prime Minister Shehbaz Sharif has constituted a high-level Steering Committee (SC) under the chairmanship of Minister for Power, Sardar Awais Ahmad Khan Leghari, to monitor the progress and ensure timely execution of the Attabad Lake, Harpo, and Hanzel hydropower projects, sources in the Ministry of Water Resources told Business Recorder.

The Steering Committee has been constituted after a visit of Minister for Water Resources, Mueen Wattoo, who shared fact finding report with the Prime Minister.

The Steering Committee also comprises of Minister for Water Resources (co-convener), Secretary Ministry of Economic Affairs, Secretary, Ministry of Planning, Development and Special Initiatives, Secretary Power Division, Secretary, Kashmir Affairs & Gilgit Baltistan, Chairman WAPDA, representative of Secretary Finance, not less below BS-21), concerned Member of Planning Commission, M/o PD&SI, Additional Chief Secretary( Development), Government of Gilgit Baltistan, Project Directors of three projects and Secretary, Water and Power Department, Gilgit Baltistan.

Harpo Hydropower Project: minister discusses reasons for delay

According to the post-visit report, following the directions of the Prime Minister during his recent visit to Gilgit Baltistan on August 4, 2025 to assess monsoon triggered floods and cloudbursts, the Minister for Water Resources inspected key flood affected areas and federal hydropower projects.

Attabad Lake Hydropower Project: Located on the Hunza River, 27 km upstream of Aliabad, it is a 54 MW project approved by ECNEC in August 2021 at Rs. 21.246 billion, with WAPDA as the executing agency.

Construction is to be completed 36 months after mobilization in December 2025, but project has faced restructuring in to four packages due to initial bidding failures.

Land acquisition is mostly made, however, 300-400 families affected have raised issues of compensation which is unresolved despite interventions.

Initial bids failed in January 2025 due to landslide dam complexities; restructured packages saw limited response, with only one bid for Package-I (civil works) and none for Package-III (electro-mechanical) as of August 7, 2025; Package-II (transmission line) evaluation complete, package-IV design ongoing; contract awards planned for December 2025.

Harpo Hydropower Project: This project is located 75 km northwest of Skardu on Harpo Nala, is a 34.5 MW run of river project approved by ECNEC in March 2014 at Rs. 9.523 billion, financed by €70 million loans from KfW (€20 million) and AFD (€50 million) effective until May 2026, - plus PSDP funds. Project is structured in two phases, with Phase-I nearing completion (detailed design, prequalification, and tendering) and Phase-II execution projected by December 2029, groundbreaking by PM in November 2024.

Land acquired (832 Kanal of 1,062(80 percent) for Rs 760 million with Rs 1,620 million transferred to DC/LAC Skardu.

Talking about current status of project, it was noted that PC-I was submitted in March 2025 at Rs 34.34 billion due to devaluation and escalation. Rs 14 billion funding shortfalls (Rs 9 billion for contracts /consultancy, Rs 5 billion for land/IDC/duties) against revised costs.

Delays in mutating acquired land to WAPDA, remaining230 Kanal acquisition pending. GB’s power deficit (200-300 MW) causing22hour load shedding in Skardu, with the completion of this project, this issue will be resolved.

Hanzel Hydropower Project: Initially a 20 MW project with feasibility in 2009, EPC contract awarded was to CNEEC-FWO JV in September 2021,with the project cost of Rs. 12.922 billion approved by ECNEC in May 2021.

Later, the contractor proposed left bank layout and the upgradation to 40 MW in December 2021, which was found viable after evaluation. Revised PC-I at Rs 20.231 billion was recommended by CDWP in October 2024.

The contractor stepped backed from its submitted proposal and denied to execute project on these costs citing that the financial proposal in two years old, and overall project cost may increase to Rs. 54 billion. Despite notices the EPC contractor has failed to resume the work at site.

Water Resources Minister has recommended to advance the Attabad, Harpo, and Hanzel hydropower projects amid flood impacts, prioritize securing donor funding(e.g., KfW, AFD, and ADB) and expedite the revised PC-Is through CDWP/ECNEC to address gaps and upgrades.

Resolve land acquisition delays by completing compensations, mutations, and transfers via monthly Go GB-WAPDA reviews by November 2025. Establish a unified high level steering committee for quarterly oversight to ensure December 2025 mobilizations and integrate climate resilience measures aligned with GB’s energy needs.

The Steering Committee will resolve the issues related to land acquisition, fulfilment of contractual obligations by contractors and securing timely funding from International Financial Institutions (IFIs).

It will ensure that PC-I revisions, if needed, be approved smoothly from the relevant forum, besides other matters which the SC deems necessary for inclusion for timely execution of all three projects.

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